Do Kwon’s Guilty Plea: A Comedy of Errors and Billions Lost 😂💰

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In a curious twist of fate, reminiscent of a poorly written novel, Do Kwon, the erstwhile co-founder of Terraform Labs, has decided to embrace the role of the fallen protagonist by pleading “guilty” to two counts of conspiracy and fraud, all in the wake of the 2022 TerraUSD market collapse. 🌟

Our antihero, who once danced in the halls of crypto royalty, had gallantly (or perhaps foolishly) proclaimed his innocence on both charges-wire fraud and conspiracy to defraud-only to find himself at the mercy of the law, now agreeing to waive his right to a trial on these counts. The courtroom drama, as reported by the ever-watchful Inner City Press, promises to be as riveting as a soap opera, with a cast of characters straight out of a Nabokovian nightmare. 🎭

All rise! Judge Paul A> Engelmayer: I understand your client wishes to plead guilty to Counts 1 and 4 – is that correct? Do Kwon’s lawyer Patton: Yes. Judge; Mr. Kwon? Do Kwon: Yes, Your Honor.

– Inner City Press (@innercitypress) August 12, 2025

The stakes are high, with Do Kwon facing a potential sentence of up to 25 years in prison, a term that could rival the length of a particularly verbose novel. The prosecution, in a gesture of mercy or perhaps just good storytelling, has agreed to recommend a 12-year prison sentence plus a modest fine of $19 million, should the judge see fit to follow their suggestion. 🏛️💰

$45 Billion Wipeout: How Terra’s Collapse Affected One Million Investors

The charges against Do Kwon are rooted in the tumultuous events of May 7, 2022, when the TerraUSD stablecoin, like a character in a poorly conceived plot, became depegged from the US dollar. This catastrophic event led to the precipitous decline of LUNA, Terraform Labs’ cryptocurrency, wiping out nearly $45 billion in market capitalization and affecting as many as one million investors. It was a fall from grace so dramatic, it could only be described as a tragedy-or perhaps a farce, depending on one’s perspective. 🌪️📉

When questioned by Judge Paul Engelmayer about his actions, Do Kwon, with the eloquence of a man who has seen the error of his ways, admitted to knowingly participating in a scheme to defraud cryptocurrency purchasers between 2018 and 2022, a period during which he managed to ensnare victims even in the hallowed grounds of the southern district of New York. 🕵️‍♂️💡

The final act of this drama is set to unfold on December 11, 2025, when sentencing for the two counts to which he has pleaded guilty will take place. If he continues to maintain his innocence on the remaining charges, including fraud and money laundering, a trial looms ominously on the horizon, tentatively scheduled for 2026. Until then, the world watches, a mix of anticipation and dread, as the story of Do Kwon continues to unfold. 📜🎥

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2025-08-12 23:26