Do Kwon Pleads Guilty to US Fraud Charges In $40 Billion Crypto Collapse (reuters.com)
(Tuesday August 12, 2025 @11:30PM (BeauHD)
from the latest-developments dept.)
- Reference: 0178658114
- News link: https://yro.slashdot.org/story/25/08/12/2142218/do-kwon-pleads-guilty-to-us-fraud-charges-in-40-billion-crypto-collapse
- Source link: https://www.reuters.com/legal/government/do-kwon-pleads-guilty-us-fraud-charges-40-billion-crypto-collapse-2025-08-12/
Terraform Labs founder Do Kwon [1]pleaded guilty in U.S. federal court to conspiracy to defraud and wire fraud over the [2]$40 billion collapse of TerraUSD and Luna in 2022. Reuters reports:
> Kwon, 33, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, entered the plea at a court hearing in New York before U.S. District Judge Paul Engelmayer. He had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
>
> Accused of misleading investors in 2021 about TerraUSD - a so-called stablecoin designed to maintain a value of $1 - Kwon pleaded guilty to the two counts under an agreement with the Manhattan U.S. Attorney's office, which brought the charges. He faces up to 25 years in prison when Engelmayer sentences him on December 11, though prosecutor Kimberly Ravener said the government had agreed to advocate for a prison term of no more than 12 years provided he accepts responsibility for his crimes.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."
[1] https://www.reuters.com/legal/government/do-kwon-pleads-guilty-us-fraud-charges-40-billion-crypto-collapse-2025-08-12/
[2] https://news.slashdot.org/story/22/05/12/1534216/cryptocurrency-luna-now-almost-worthless-after-controversial-stablecoin-it-is-linked-to-loses-peg
> Kwon, 33, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, entered the plea at a court hearing in New York before U.S. District Judge Paul Engelmayer. He had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
>
> Accused of misleading investors in 2021 about TerraUSD - a so-called stablecoin designed to maintain a value of $1 - Kwon pleaded guilty to the two counts under an agreement with the Manhattan U.S. Attorney's office, which brought the charges. He faces up to 25 years in prison when Engelmayer sentences him on December 11, though prosecutor Kimberly Ravener said the government had agreed to advocate for a prison term of no more than 12 years provided he accepts responsibility for his crimes.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."
[1] https://www.reuters.com/legal/government/do-kwon-pleads-guilty-us-fraud-charges-40-billion-crypto-collapse-2025-08-12/
[2] https://news.slashdot.org/story/22/05/12/1534216/cryptocurrency-luna-now-almost-worthless-after-controversial-stablecoin-it-is-linked-to-loses-peg
Simple fact: Crypto is ALWAYS a scam. (Score:2, Insightful)
by Moryath ( 553296 )
It has precisely 2 purposes: to serve as a pyramid / "greater fool theory" scam, and to hide transactions for crimes like extortion/ransomware, illegal drugs and Kiddie Pr0n.
Re: (Score:2)
by ndsurvivor ( 891239 )
My theory is that with BTC being "mainstreamed", is that after about a 20% collapse in the stock market, that everybody will start to sell BT at once. All of a sudden... it will plummet near zero and everybody will wonder why nobody wants to buy their tulips anymore.
Reality check (Score:2)
by Slashythenkilly ( 7027842 )
The Donald just opened the flood gates for 401k investments in crypto.
Re: (Score:2)
Someone about to get a pardon, I believe.