South Korean crypto mogul Do Kwon pleads guilty to fraud

Cryptocurrency entrepreneur faces up to 25 years successful situation implicit the $40bn illness of the TerraUSD and Luna tokens.

South Korean cryptocurrency mogul Do Kwon has pleaded blameworthy to fraud successful the United States successful a lawsuit tied to the $40bn illness of the TerraUSD and Luna tokens.

Kwon, the cofounder of Singapore-based Terraform Labs, entered the plea astatine the Southern District of New York connected Tuesday, according to tribunal filings.

Kwon admitted to 1 number of conspiring to perpetrate commodities fraud, securities fraud and ligament fraud, and 1 number of committing ligament fraud.

As portion of his plea, the crypto entrepreneur agreed to forfeit much than $19m successful proceeds from his crimes, according to prosecutors.

Kwon had successful January entered a plea of not blameworthy to 9 counts successful the case, including securities fraud, ligament fraud and wealth laundering conspiracy.

“Do Kwon utilized the technological committedness and concern euphoria astir cryptocurrency to perpetrate 1 of the largest frauds successful history,” US Attorney Jay Clayton said.

“Kwon attracted tens of billions successful funds to Terraform’s ecosystem by promising a self-stabilising stablecoin. By the clip the markets discovered the ecosystem was unstable, it was excessively late: the strategy collapsed, and investors astir the satellite suffered billions successful losses.”

Kwon, who is owed to beryllium sentenced connected December 11, faces a maximum punishment of 25 years successful prison.

Kwon was extradited to the US successful December 2024, pursuing his apprehension successful Montenegro aft spending months connected the tally from authorities.