Terraform Labs co-founder Do Kwon has pleaded guilty to two felony charges—wire fraud and conspiracy to defraud—in a dramatic reversal from his earlier not guilty stance. The plea deal, revealed in the US District Court for the Southern District of New York, includes $19 million in financial penalties and a sentencing cap recommendation of no more than 12 years in prison. Without the agreement, the charges could have carried a combined sentence of up to 25 years. Sentencing is scheduled for December 11.

Kwon, indicted in March 2023 on multiple counts including securities fraud, market manipulation, and money laundering, was a central figure in the collapse of the Terra ecosystem in 2022, which wiped out billions from the crypto market. Following the crash, he went into hiding until being arrested in Montenegro in 2023 for using falsified travel documents. After serving a four-month sentence there, both US and South Korean authorities sought his extradition, eventually leading to his court appearance in New York earlier this year.

His decision to plead guilty comes after months of pretrial discussions between prosecutors and his legal team, despite expectations that the case would go to trial in January 2026. The exact reason for his sudden change of plea remains unclear.

Do Kwon now joins a growing list of high-profile crypto figures facing severe consequences in SDNY court. Former FTX CEO Sam Bankman-Fried received a 25-year sentence earlier this year, while Tornado Cash co-founder Roman Storm was recently found guilty on related charges and awaits sentencing.