South Korean cryptocurrency mogul Do Kwon, known as “the cryptocurrency king,” has pleaded guilty to two counts of fraud charges related to the $40 billion collapse of Terraform Labs’ cryptocurrency ecosystem. Kwon, 33, entered the plea in Manhattan federal court and faces a sentencing date of December 11.
The company, co-founded by Kwon in 2018, promised investors that their money was safe with its stablecoin TerraUSD. However, when the stablecoin’s value plummeted, investors worldwide lost billions of dollars. The collapse occurred after the company claimed that TerraUSD was reliable and pegged to a dollar stable asset.
As part of his plea, Kwon agreed to forfeit over $19 million in ill-gotten proceeds and lose his interest in Terraform and its cryptocurrencies. He’ll also face no prison term longer than 12 years, according to prosecutors, although federal guidelines recommend up to 25 years.
Kwon was extradited to the US from Montenegro after being arrested on false passport in Europe in March 2023. His lawyer said the plea marked Kwon’s acceptance of responsibility for making false statements to investors. The US Attorney described Kwon as having committed one of the largest frauds in history, causing billions of dollars in losses to investors worldwide.
Source: https://apnews.com/article/do-kwon-terraform-court-montenegro-crypto-mogul-46d924b4d34e90b850889d711c93c802