South Korean entrepreneur Do Kwon, co-founder of Terraform Labs and cryptocurrency developer #TerraUSD and #Luna , pleaded guilty to two counts of charges. The latter relate to conspiracy to commit fraud and fraud using electronic communications. This is reported by Reuters.

Earlier, in January, he denied guilt on nine counts, including securities fraud and money laundering, and his trial was scheduled for January 26, 2026.

According to the prosecution, in 2021 Kwon misled investors by claiming that the Terra Protocol algorithm automatically restored the peg of the stablecoin TerraUSD to $1 after its price fell. In reality, he organized a covert purchase of the token by a high-frequency trading company to artificially support its price.