Do Kwon’s Guilty Plea Marks a New Era of Accountability for Crypto’s Fallen Stars
Do Kwon, once the poster child for the “algorithmic stablecoin revolution,” has finally blinked. The Terraform Labs co-founder pleaded guilty this week to two felony charges — wire fraud and conspiracy to defraud — tied to the catastrophic collapse of the Terra ecosystem in 2022, a disaster that vaporized around $40 billion in market value and set off a chain reaction that reshaped the entire crypto industry.
It’s a stunning reversal. For months, Kwon’s legal stance had been one of total defiance. He initially pleaded not guilty to all nine U.S. criminal charges, including securities fraud, market manipulation, and money laundering. His trial was penciled in for January 2026, giving him nearly two years to mount a defense….
