Terraform co-founder Do Kwon pleads guilty over $40 billion crypto collapse

Terraform Labs co-founder Do Kwon has pleaded blameworthy to conspiracy and ligament fraud 3 years aft his collapsed cryptocurrency steadfast wiped retired $40 cardinal successful funds, according to a study from Bloomberg. Kwon entered his plea successful a New York tribunal connected Tuesday arsenic portion of a woody reached with prosecutors that reduced his charges.

Federal prosecutors successful New York charged Kwon aft his firm’s Terra stablecoin and sister token Luna, crashed successful 2022, causing some investors to suffer each of their savings connected a cryptocurrency they thought was expected to beryllium little volatile than others. Kwon was arrested successful Montenegro successful 2023 earlier the state extradited him to the US implicit a twelvemonth later.

Inner City Press, which reports connected courtroom proceedings, said Kwon admitted to knowingly defrauding cryptocurrency customers and working with different company to artificially inflate Terra’s $1 peg. Kwon’s sentencing is acceptable for December 11th, with the conspiracy complaint holding a maximum condemnation of 5 years, and ligament fraud astatine a maximum of 20 years, according to Bloomberg.