**Do Kwon Admits Guilt in Crypto Fraud Case, Faces Up to 12-Year Sentence**

Do Kwon's admission reveals significant implications for accountability in the digital asset market.

Do Kwon, the former CEO of Terraform Labs, has pleaded guilty in a New York court to two counts of fraud connected to the collapse of his companies’ digital currencies, which contributed to a staggering loss of more than $40 billion for investors. Appearing in a yellow prison jumpsuit, Kwon accepted responsibility for orchestrating a "multi-billion dollar cryptocurrency asset securities fraud" regarding the failed coins, TerraUSD and Luna, which experienced a notable downturn in 2022, eventually leading to a broader crypto market sell-off.

As part of a plea agreement, Kwon's sentence will be capped at 12 years, with the judge possessing discretion to impose a longer sentence, potentially up to 25 years. Sentencing is scheduled for December 11. The guilty plea represents a significant moment in addressing accountability within the cryptocurrency sector, a stance echoed by Todd Snyder, appointed to oversee Terraform Labs' liquidation.

Initially evading South Korean authorities post-arrest warrant, Kwon was detained in Montenegro and subsequently extradited to the U.S. Kwon confessed in court to making misleading statements concerning the stabilizing mechanisms of TerraUSD, admitting his actions were wrong and issuing an apology.

Kwon's earlier not-guilty plea on nine charges, which included securities fraud and money laundering conspiracy, now stands revised as he forfeits nearly $19.3 million and several properties while agreeing to restitution terms. Despite the plea, Kwon continues to face unresolved charges in his home country of South Korea, complicating his legal battles further.