Cryptocurrency entrepreneur could face up to 25 years in prison following the $40bn collapse of the TerraUSD and Luna tokens.
In a significant legal development for the cryptocurrency world, South Korean entrepreneur Do Kwon has entered a guilty plea in the United States for his role in the colossal $40 billion collapse of TerraUSD and Luna tokens.
Kwon, the co-founder of Singapore-based Terraform Labs, formally submitted his plea at the Southern District of New York this Tuesday, as documented in the relevant court records.
In his plea, Kwon acknowledged guilt on one count of conspiring to execute fraud involving commodities, securities, and wire fraud, alongside one count of wire fraud outright.
As part of the court proceedings and his plea agreement, Kwon has committed to relinquishing more than $19 million in assets derived from his fraudulent activities, as stated by the prosecuting authorities.
Initially, in January, Kwon had pleaded not guilty to the nine charges brought against him, which included accusations of securities fraud, wire fraud, and money laundering conspiracy.
“Do Kwon exploited the enthusiasm and technological novelty of cryptocurrency to orchestrate one of the most significant frauds in history,” remarked US Attorney Jay Clayton.
Kwon, the co-founder of Singapore-based Terraform Labs, formally submitted his plea at the Southern District of New York this Tuesday, as documented in the relevant court records.
In his plea, Kwon acknowledged guilt on one count of conspiring to execute fraud involving commodities, securities, and wire fraud, alongside one count of wire fraud outright.
As part of the court proceedings and his plea agreement, Kwon has committed to relinquishing more than $19 million in assets derived from his fraudulent activities, as stated by the prosecuting authorities.
Initially, in January, Kwon had pleaded not guilty to the nine charges brought against him, which included accusations of securities fraud, wire fraud, and money laundering conspiracy.
“Do Kwon exploited the enthusiasm and technological novelty of cryptocurrency to orchestrate one of the most significant frauds in history,” remarked US Attorney Jay Clayton.
“Kwon lured tens of billions of dollars into Terraform’s ecosystem through promises of a self-regulating stablecoin. However, by the time the market recognized the inherent instability, it was too late—the system imploded, leaving investors worldwide with billions in losses.
Kwon is presently facing a maximum consequence of 25 years of incarceration and is scheduled to be sentenced on December 11.
After a prolonged period of evasion, Kwon was apprehended in Montenegro in December 2023 and extradited to the United States to face his charges.
