Terraform Co-Founder Do Kwon to Plead Guilty in $40B UST Fiasco
Main Idea
Terraform Labs co-founder Do Kwon is expected to plead guilty in a US fraud case related to the $40 billion collapse of the TerraUSD stablecoin, facing charges including fraud and money laundering.
Key Points
1. Do Kwon faces nine US charges, including fraud and money laundering, tied to the 2022 collapse of TerraUSD (UST), which erased $40 billion in value.
2. A change of plea hearing is scheduled for Tuesday in Manhattan federal court before Judge Paul Engelmayer.
3. Kwon and Terraform’s former CFO were arrested in Montenegro in March 2023 while attempting to flee using fake passports.
4. The US SEC won a civil fraud case against Kwon and Terraform in April 2024, with a jury finding they misled investors about TerraUSD’s stability and falsely claimed a Korean payments app used their blockchain.
5. Kwon and Terraform agreed to pay $4.47 billion in a settlement, with Kwon personally owning 92% of the company.
Description
Terraform Labs co-founder Do Kwon is expected to plead guilty in a US fraud case tied to the 2022 collapse of the TerraUSD (UST) stablecoin , which wiped out $40b in value and sent shockwaves through the cryptocurrency industry. US District Judge Paul Engelmayer has scheduled a change of plea hearing for Tuesday 10:30 am in Manhattan federal court. In an order on Monday, the judge directed Kwon to be ready to explain in detail how he broke the law if he admits guilt. The 33-year-old South Korean...
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