Do Kwon, co-founder of Terraform Labs, pleaded guilty to a US fraud case related to the $40 billion Terrausd Stablecoin Crash in 2022.
At a hearing in New York today, Kwon pleaded guilty to conspiracy and wire fraud in a deal with prosecutors. Appearing in court in his yellow prison uniform, he also agreed to pay a $19.3 million fine and confiscate some of his assets.
“I conspired with others to scam a buyer of cryptocurrency issued by Terraform Labs. I did so on purpose. This was wrong. I apologized for my actions. I accept full responsibility,” he said.
Kwon, who was also indicted in the US and South Korea, played a key role in the crisis that began with the collapse of Terraus, leading to major fluctuations in the crypto market and bankruptcy of the FTX exchange in the spring of 2022.
Under agreement with the prosecutor, Kwon will face up to 12 years in prison if he does not commit a new crime. Under normal circumstances, the fee is sentenced to a total sentence of up to 25 years.
Kwon was charged in the US in 2023, running for nearly two years before being captured in Montenegro with a fake passport and handed over to the US after being declared in January. This development allowed us to conclude the case early, with the aforementioned trial scheduled for next year.
*This is not investment advice.
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