Crypto Kingpin Do Kwon Faces Justice in U.S. Courtroom Drama

South Korean entrepreneur Do Kwon, known for his role in the collapse of digital currencies TerraUSD and Luna, pleaded guilty on Tuesday to charges of conspiracy to defraud and wire fraud in a U.S. court.

Kwon, who co-founded Terraform Labs, accepted responsibility for misleading investors about the stability of TerraUSD. This stablecoin was claimed to maintain a $1 value with the help of a trading firm that manipulated its price. Now, Kwon faces up to 25 years in prison, though a plea deal suggests a possible 12-year term.

In addition to his guilty plea, Kwon agreed to a $4.55 billion settlement with the U.S. Securities and Exchange Commission, which includes an $80 million fine. Kwon, currently detained post his extradition from Montenegro, could be transferred abroad after serving half of his U.S. sentence.

(With inputs from agencies.)