Crypto Magnate Kwon Pleads Guilty to Defrauding Investors of $40 Billion

The Terraform Labs cofounder was extradited to the United States earlier this year from Europe after getting arrested for using a fake passport.

Montenegrin police officers escort Terraform Labs founder Do Kwon in Montenegro's capital, Podgorica, on March 23, 2024. AP Photo/Risto Bozovic, File

Do Hyeong Kwon, cofounder of blockchain and crypto company Terraform Labs, has pled guilty to fraud, admitting that he engaged in criminal schemes that cost investors and users billions of dollars.

Kwon had marketed Terraform as a self-contained and decentralized financial ecosystem leveraging its own blockchain technology, the Justice Department said in an Aug. 12 statement.