Terraform’s Do Kwon Pleads Guilty to Its Collapse
Main Idea
Do Kwon, the founder of Terraform, pled guilty to fraud charges related to the collapse of TerraUSD (UST) and LUNA, which resulted in over $40 billion in losses.
Key Points
1. Do Kwon admitted guilt to one count of conspiracy to commit fraud, as announced by the U.S. attorney for the Southern District of New York.
2. Terraform's ecosystem, including UST and LUNA, reached a market cap of over $50 billion before collapsing in May 2022 due to misrepresentations.
3. Do Kwon was captured in Europe in March 2023 and will forfeit $19 million as part of his plea agreement.
4. The collapse of Terraform's ecosystem led to over $40 billion in losses for investors.
5. UST was marketed as a self-stabilizing stablecoin, but failed to maintain its peg to the dollar, contributing to the collapse.
Description
One of the most prolonged cases in the crypto world surrounding the infamous Terra has finally seen its former head accept responsibility for his crimes. Court documents reveal the magnitude of the offences, and hopefully, this can bring some peace to the affected. Owning Up to the Wrongdoings The U.S attorney for the Southern District of New York, Jay Clayton, announced yesterday that Do Hyeong Kwon (Do Kwon) pled guilty to one count of conspiring to commit commodities, securities, and wire fra...
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