Do Kwon Pleads Guilty as Prosecutors Recommend No More Than 12 Years in Prison

On August 13, it was reported that Do Kwon admitted to two counts of fraud in a New York federal court on Tuesday. The 33-year-old co-founder of Terraform Labs developed the TerraUSD and LUNA tokens, which collapsed in 2022 and resulted in approximately $40 billion in losses. Although the statutory maximum sentence is 25 years, prosecutors have agreed to recommend no more than 12 years in prison if he pleads guilty and shows remorse. The presiding judge will deliver the sentencing decision on December 11. This case is one of several major incidents during the 2022 crypto winter, a period when multiple digital asset companies went bankrupt.