Do Kwon, the former CEO of Singapore-based Terraform Labs, has pleaded guilty to two counts of fraud related to the collapse of two cryptocurrencies, TerraUSD and Luna, which cost investors over $40 billion. The US accuses him of orchestrating a multi-billion dollar crypto asset securities fraud.
As part of his plea deal, prosecutors have agreed not to seek a sentence longer than 12 years. Kwon faces up to $19.3m in fines, forfeiture, and restitution. He is due for sentencing on December 11.
The guilty plea comes after a lengthy legal battle, during which Kwon initially fled South Korea and was eventually extradited to the US. Prosecutors allege he misrepresented features of TerraUSD to keep its value stable without outside intervention. They claim this led investors to buy into the company’s offerings, propelling up the value of Luna token.
Kwon acknowledged in court that he made false statements about why TerraUSD regained its peg and apologized for his conduct. The plea deal also means he will refrain from challenging the allegations in the indictment.
Source: https://www.bbc.com/news/articles/c2kznpdvwwlo