Do Kwon Admits Guilt in $40 Billion Terra Crypto Collapse
Do Kwon, the man behind one of crypto’s biggest disasters, finally admitted he was wrong.
On Tuesday, August 12, 2025, the 33-year-old South Korean entrepreneur pleaded guilty to fraud charges in a New York federal court. His actions led to $40 billion in losses when his Terra cryptocurrency empire collapsed in 2022.
Standing before Judge Paul Engelmayer in a yellow prison jumpsuit, Kwon admitted to conspiracy to defraud and wire fraud. This marked a complete turnaround from January, when he had pleaded not guilty to all charges.
“I made false and misleading statements about why it regained its peg by failing to disclose a trading firm’s role in restoring that peg,” Kwon told the court. “What I did was wrong.”
