Terraform Labs co-founder Do Kwon has agreed to plead guilty to charges of wire fraud and conspiracy in the United States, marking a dramatic turn in the case stemming from the catastrophic collapse of TerraUSD in 2022, as noted by Reuters on Wednesday.
The 33-year-old faces up to 25 years in prison after waiving his right to a trial.
Court documents reveal Kwon revoked his previous plea of not guilty after being extradited from Montenegro, where he was arrested for using false travel documents.
The charges are related to the failure of the algorithmic stablecoin that caused the collapse of the crypto market.
The reason behind the Terraform co-founder's decision to switch his plea after seven months remained unclear. Court documents revealed that while US prosecutors had been in discussions with Kwon’s legal team regarding "pretrial motions and related issues," the case was still anticipated to proceed to trial in January 2026.