Do Kwon pleads guilty in $40B Terra/Luna fraud – Details
Main Idea
Do Kwon, co-founder of Terraform Labs, has pleaded guilty to wire fraud charges related to the $40 billion collapse of TerraUSD and LUNC, marking a significant legal resolution in the case.
Key Points
1. Do Kwon agreed to plead guilty to two felony charges of wire fraud, avoiding a trial and admitting to misleading investors about TerraUSD.
2. The plea deal was filed on August 12 in the Southern District of New York, reversing his earlier not-guilty plea.
3. Prosecutors accused Kwon of contributing to the collapse of TerraUSD and LUNC in May 2022, which wiped out an estimated $40 billion in investor wealth.
4. Kwon may face a reduced prison sentence of 12 years, as prosecutors consider recommending a lighter term due to his guilty plea.
5. In 2024, Kwon also settled with the U.S. SEC as part of a $4.55 billion deal, further resolving his legal troubles.
Description
Do Kwon’s guilty plea ends hopes of a trial, sealing a major chapter in the $40B TerraUSD collapse saga.
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