Co-founder Terraform Labs to Kwon He admitted his guilt on criminal charges of fraud and collusion. It is reported Reuters with reference to court documents.

At the meeting, Kwon apologized for his actions:

“I made false and misleading statements. I did not reveal the role of the trading company in restoring the binding. What I did was wrong.’

he renounced the right to trial with a jury and confirmed that he was aware of the possibility of punishment before 25 years in prison.

Judge: How old are you?
Do Kwon: 33.
Judge: Are you satisfied with your attorneys' representation of you?
Do Kwon: Yes, Your Honor.
Judge: You know you have the right to go to trial, and you are waiving that right?
Do Kwon: Yes, Your Honor.
— Inner City Press (@innercitypress) August 12, 2025

Kwon made a deal with the Manhattan Prosecutor’s Office: the accusation agreed to request a deadline Less than 12 years old subject to recognition of guilt. The judge noted that he could impose a longer punishment than proposed by the Ministry of Justice.

The charges are related to the collapse Stablecoin TerraUSD (UST) and token Luna in 2022, which resulted in investors’ losses of tens of billions of dollars and a crisis in the crypto market.

The verdict is scheduled for December 11, 2025.

Recall that in March 2023, to Kwon, they were detained in Montenegro when trying to fly out with forged documents. After extradition to the United States, he was charged with charges. In 2022, the South Korean court issued a warrant for Kwon’s arrest and five other persons in cases of violation of capital markets.