Former head of Terraform Labs, Do Kwon, has pleaded guilty to two fraud charges over a cryptocurrency crisis that cost investors more than $40 billion, according to the BBC. Kwon led Singapore-based Terraform Labs, whose TerraUSD and Luna cryptocurrencies collapsed in 2022, sparking a broader crypto market sell-off. U.S. prosecutors said Kwon misled investors by concealing that a trading firm propped up TerraUSD’s $1 peg, while he publicly claimed an algorithm maintained its value. The plea deal caps his prison exposure at 12 years, though the judge could impose up to 25 years, and requires forfeiting up to $19.3 million, properties, and paying restitution. Kwon fled South Korea in 2023, was arrested in Montenegro, and extradited to the U.S. He still faces charges in South Korea.
