Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case
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- Terra founder admits to misleading investors about TerraUSD stability mechanisms.
- Faces up to 25 years, but prosecutors will seek no more than 12 under a plea agreement.
- Kwon already agreed to $80 million civil fine in the SEC settlement worth $4.55 billion.
Do Kwon has pleaded guilty to conspiracy to defraud and wire fraud charges in a Manhattan federal court. He also admitted his role in the Terra ecosystem collapse that wiped out approximately $40 billion in investor funds during 2022. The 33-year-old South Korean entrepreneur co-founded Terraform Labs and created the TerraUSD stablecoin and Luna token before their failure.
Kwon entered his not guilty plea to a nine-count indictment in January before he entered his guilty plea before U.S. District Judge Paul Engelmayer. He was indicted for securities fraud, wire fraud, commodities fraud, and money laundering conspiracy for his role in running the Terra ecosystem.
Secret Trading Firm Manipulation Propped Up Failing Stablecoin
Prosecutors alleged that when TerraUSD lost its $1 peg in May 2021, Kwon falsely claimed an algorithmic system called “Terra Protocol” had automatically restored the coin’s stab…
The post Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case appeared first on Coin Edition.
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Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case
Share:
- Terra founder admits to misleading investors about TerraUSD stability mechanisms.
- Faces up to 25 years, but prosecutors will seek no more than 12 under a plea agreement.
- Kwon already agreed to $80 million civil fine in the SEC settlement worth $4.55 billion.
Do Kwon has pleaded guilty to conspiracy to defraud and wire fraud charges in a Manhattan federal court. He also admitted his role in the Terra ecosystem collapse that wiped out approximately $40 billion in investor funds during 2022. The 33-year-old South Korean entrepreneur co-founded Terraform Labs and created the TerraUSD stablecoin and Luna token before their failure.
Kwon entered his not guilty plea to a nine-count indictment in January before he entered his guilty plea before U.S. District Judge Paul Engelmayer. He was indicted for securities fraud, wire fraud, commodities fraud, and money laundering conspiracy for his role in running the Terra ecosystem.
Secret Trading Firm Manipulation Propped Up Failing Stablecoin
Prosecutors alleged that when TerraUSD lost its $1 peg in May 2021, Kwon falsely claimed an algorithmic system called “Terra Protocol” had automatically restored the coin’s stab…
The post Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case appeared first on Coin Edition.
In This News
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In This News
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Read More
Takaichi Triumph: Japan’s record 56,000 Nikkei surge sends bitcoin to $72,000, gold past $5,000