Terraform Labs co-founder Do Kwon pleaded responsible on Tuesday in Manhattan federal court docket to 1 depend every of conspiracy to defraud and wire fraud stemming from the 2022 collapse of the algorithmic stablecoin TerraUSD and its companion token Luna, an occasion that erased about $40 billion in worth from cryptocurrency markets
Terraform Labs co-founder Do Kwon pleaded responsible on Tuesday in Manhattan federal court docket to 1 depend every of conspiracy to defraud and wire fraud stemming from the 2022 collapse of the algorithmic stablecoin TerraUSD and its companion token Luna, an occasion that erased about $40 billion in worth from cryptocurrency markets.
Underneath the plea settlement offered to U.S. District Decide Paul Engelmayer, prosecutors will advocate for a jail time period of not more than 12 years—nicely under the roughly 25-year guideline vary—and a $19 million wonderful, supplied Kwon commits no additional offenses earlier than sentencing. The decide accepted the plea and can set a sentencing date later.
Kwon, 33, had beforehand denied a nine-count indictment that additionally alleged securities, commodities and money-laundering violations. He was extradited from Montenegro on Dec. 31, 2024, after months at massive. The prison case follows a separate $4.55 billion civil settlement with the U.S. Securities and Trade Fee reached final yr, which banned him from future crypto actions.
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