Do Kwon, the creator of the TerraUSD stablecoin and Luna token, pleaded guilty to charges of conspiracy to commit fraud and wire fraud on August 17, 2025. Previously maintaining innocence, Kwon admitted to misleading investors about the safety of their funds linked to Terraform Labs. His actions led to the catastrophic collapse of Terra and Luna in 2022, causing the Luna price to plummet from nearly $120 to below 10 cents and breaking the UST peg, triggering numerous crypto company bankruptcies. In his statement, Kwon acknowledged his agreement with others to engage in a scheme to defraud investors, issuing false and misleading statements. The plea agreement suggests a maximum sentence of 12 years, with Kwon eligible for an international transfer after serving half his term. His circumstances are further complicated by unresolved charges in South Korea, underscoring the ongoing legal fallout from the Terra collapse.

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