Do Kwon, co-founder of Terraform Labs, has pleaded guilty to fraud charges related to the $40 billion collapse of the TerraUSD and Luna cryptocurrencies. His actions misled investors in 2021, leading to significant financial losses.

Editor’s Note: This case highlights the risks associated with cryptocurrency investments and the importance of regulatory oversight. Kwon's guilty plea may set a precedent for accountability in the crypto industry, which has faced scrutiny following major market failures.