Terraform's Do Kwon Pleads Guilty to Conspiracy, Wire Fraud in UST Blow-up
Main Idea
Terraform Labs founder Do Kwon pleaded guilty to conspiracy and wire fraud related to the collapse of the Terra/Luna stablecoin ecosystem, admitting to knowingly defrauding purchasers of the TerraUSD stablecoin.
Key Points
1. Do Kwon admitted to knowingly participating in a scheme to defraud purchasers of the TerraUSD stablecoin.
2. He pleaded guilty to conspiracy and wire fraud charges in connection with the collapse of the Terra/Luna ecosystem.
3. The DOJ agreed to recommend a maximum sentence of 12 years, with potential release after serving half of the sentence.
4. Kwon acknowledged making false statements about the stability of UST in 2021 and apologized for his conduct.
5. The case is being overseen by Judge Paul Engelmayer in the Southern District of New York.
Description
NEW YORK — Terraform Labs founder Do Kwon pleaded guilty to conspiracy to commit fraud and wire fraud Tuesday morning, three years after the dramatic collapse of the Terra/Luna stablecoin ecosystem. Wearing a canary yellow prison jumpsuit, the 33-year-old Korean national said he "knowingly engaged in a scheme to defraud and did in fact defraud" purchasers of the TerraUSD (UST) stablecoin. Judge Paul Engelmayer, who is overseeing the case, walked the Terra creator through the charges to establish...
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