Terraform Labs co-founder, Do Kwon, changed his plea from not guilty to guilty to two counts of wire fraud and conspiracy to commit fraud.
According to a report on Tuesday from the U.S. District Court for the Southern District of New York, Kwon waived his right to trial on two of the nine charges he faces from the U.S. government and pleaded guilty. These two charges could result in a prison sentence of up to 25 years if imposed consecutively.
The co-founder of Terraform was indicted in March 2023 on charges including securities fraud, market manipulation, money laundering, and wire fraud related to his role at the company. He first appeared in court in New York in January after being extradited from Montenegro, pleading not guilty to all charges and remains detained in the United States without bail.
After the Terra plane crash in 2022, Kwon's whereabouts were largely unknown until authorities in Montenegro arrested him for using fake travel documents. He served four months in prison before U.S. and South Korean officials jointly filed for his extradition from Montenegro, a process that became complicated due to challenges in that country's lower courts.