Do Kwon pleads guilty: The prosecution recommends a prison sentence of no more than 12 years, and the presiding judge will deliver the sentencing decision on December 11.

On August 13, according to a report by Reuters, South Korean crypto entrepreneur Kwon Do-hyung ( Do Kwon ) pleaded guilty to two counts of fraud in a federal court in New York on Tuesday. The 33-year-old co-founder of Terraform Labs developed the TerraUSD and LUNA tokens, which collapsed in 2022, causing losses of about $40 billion. During a hearing presided over by Federal Judge Paul Engelmayer in the Southern District of New York, Kwon pleaded guilty to conspiracy to commit fraud and wire fraud. In January, he had pleaded not guilty to a nine-count indictment involving securities fraud, wire fraud, commodity fraud, and Money Laundering. In court, Do Kwon apologized, saying, "I concealed the truth about the trading company's intervention in restoring the peg and made false statements. My actions were wrong." Although the maximum statutory penalty is 25 years, prosecutors agreed to recommend no more than 12 years in prison if he shows remorse. The presiding judge will make a sentencing decision on December 11. This case is one of the major cases during the crypto winter of 2022, when several digital asset companies filed for bankruptcy.