Do Kwon Admits Guilt in Crypto Fraud Case

• Do Kwon admitted guilt in the case of fraud.
• The fraud of the stablecoin TerraUSD resulted in the loss of investors.
• Kwon is expected to be sentenced to more than 19 million dollars.

The South Korean crypto magnate Do Kwon admitted his guilt in the case of fraud related to the collapse of crypto ecosystems worth 40 billion dollars. He committed this on September 12, 2025, in the federal court of Manhattan.

Kwon, who is referred to as the "crypto king," agreed to a deal with the prosecution, which, according to which, the maximum term of imprisonment should not exceed 12 years. This was stated in response to the fact that federal regulations anticipated nearly 25 years. Investors worldwide suffered significant losses due to the collapse of Terraform Labs, founded by Kwon in 2018.

The collapse occurred in May 2022, when the stablecoin TerraUSD, which promised stability, rapidly lost its value, causing significant damage to investors. Kwon also agreed to be sentenced to more than 19 million dollars, which is his improperly obtained income.

After the arrest in Montenegro on March 23, 2023, Kwon was extradited to the USA, where he was charged with fraud and deception. His verdict will be delivered on December 11, 2025.

Tags: Crime