BREAKING: Do Kwon pleads guilty of wire fraud — What’s next for LUNA and LUNC?
Main Idea
Do Kwon, former CEO of Terraform Labs, pleaded guilty to wire fraud and conspiracy in a US court, marking a significant turn in the legal proceedings surrounding the collapse of TerraUSD and LUNA.
Key Points
1. Do Kwon pleaded guilty to two of nine charges in a US court, with sentencing date not yet set; South Korea plans separate criminal proceedings.
2. The plea does not affect the $4.5 billion civil penalty previously imposed by the SEC on Terraform Labs and Kwon.
3. The collapse of TerraUSD in 2022, an algorithmic stablecoin, resulted in a $40 billion loss, one of the largest in crypto history.
4. LUNC (Terra Luna Classic) continues under community control, while LUNA (from Terra 2.0 fork) faces an uncertain future due to the absence of its original leadership.
5. Regulators in multiple countries, including the US, South Korea, and Singapore, have pursued actions against Kwon and Terraform Labs for deceptive practices.
Description
Do Kwon, a once-celebrated crypto entrepreneur whose company Terraform Labs collapsed in a $40 billion market fallout, has finally pleaded guilty to wire fraud and conspiracy to defraud in the United States. Per public information from the US District Court in the Southern District of New York, Kwon waived his right to trial on two of the nine criminal charges he faced and admitted guilt in Tuesday’s hearing. Each count carries a statutory maximum sentence of 20 years, with prosecutors indicatin...
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