Krutika Adani
Terraform Co-Founder Faces Nine US Charges
Do Kwon is set to plead guilty to US fraud charges over the 2022 TerraUSD collapse that wiped out $40 billion. Charges include fraud, wire fraud, and money laundering.
From Crypto Star to Global Fugitive
Once a celebrated entrepreneur, Kwon fled after TerraUSD’s crash. He was arrested in Montenegro in March 2023 with fake passports, ending a months-long international manhunt.
How TerraUSD’s Peg Crumbled
TerraUSD, an algorithmic stablecoin pegged to the US dollar, failed in May 2022, triggering a market crash that also played a role in FTX’s downfall.
$4.47B SEC Settlement & 92% Ownership
Kwon and Terraform agreed to pay $4.47 billion in an SEC settlement, shut down operations, and repay creditors. Kwon personally owned 92% of the firm.
What the Guilty Plea Means
The plea deal could shorten US court proceedings but may impact South Korea’s separate fraud case. The outcome could set a precedent for future global crypto prosecutions.