Do Kwon Set to Plead Guilty in $40 Billion Fraud Case After “Secret Bailout” Allegations Surface
- Do Kwon will plead guilty to conspiracy and wire fraud in U.S. court over the TerraUSD collapse.
- Prosecutors allege he falsely claimed an algorithm restored TerraUSD’s value while secretly arranging market support.
- The SEC previously fined Kwon $80 million and banned him from cryptocurrency transactions in a $4.55 billion settlement.
Do Kwon, the co-founder of the collapsed Terraform Labs, will plead guilty to conspiracy and wire fraud charges in a U.S. federal court. The plea follows allegations that he misled investors about the stability of TerraUSD, a stablecoin that collapsed in 2022 alongside its sister token, Luna, erasing around $40 billion in market value.
U.S. District Judge Paul Engelmayer confirmed Kwon’s intention to change his plea during a hearing on August 12. The 33-year-old entrepreneur had previously pleaded not guilty in January to a nine-count indictment.
As we reported, this move was expected. Here was CoinEdition’s report on the anticipated plea change.
The Deception at the Heart of the Case
Prosecutors allege that in May 2021, when TerraUSD fell below its $1 peg, Kwon falsely claimed that an algorithm known as the “Terra…
The post Do Kwon Set to Plead Guilty in $40 Billion Fraud Case After “Secret Bailout” Allegations Surface appeared first on Coin Edition.
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Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case
Do Kwon Expected to Change Plea in High-Profile Terra/LUNA Fraud Case
Do Kwon Set to Plead Guilty in $40 Billion Fraud Case After “Secret Bailout” Allegations Surface
- Do Kwon will plead guilty to conspiracy and wire fraud in U.S. court over the TerraUSD collapse.
- Prosecutors allege he falsely claimed an algorithm restored TerraUSD’s value while secretly arranging market support.
- The SEC previously fined Kwon $80 million and banned him from cryptocurrency transactions in a $4.55 billion settlement.
Do Kwon, the co-founder of the collapsed Terraform Labs, will plead guilty to conspiracy and wire fraud charges in a U.S. federal court. The plea follows allegations that he misled investors about the stability of TerraUSD, a stablecoin that collapsed in 2022 alongside its sister token, Luna, erasing around $40 billion in market value.
U.S. District Judge Paul Engelmayer confirmed Kwon’s intention to change his plea during a hearing on August 12. The 33-year-old entrepreneur had previously pleaded not guilty in January to a nine-count indictment.
As we reported, this move was expected. Here was CoinEdition’s report on the anticipated plea change.
The Deception at the Heart of the Case
Prosecutors allege that in May 2021, when TerraUSD fell below its $1 peg, Kwon falsely claimed that an algorithm known as the “Terra…
The post Do Kwon Set to Plead Guilty in $40 Billion Fraud Case After “Secret Bailout” Allegations Surface appeared first on Coin Edition.
Read More
Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case