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Do Kwon Pled Guilty on Two Charges, Faces Potential 12-Year Sentence
In a stunning turn of events, Do Kwon, the co-founder and former CEO of Terraform Labs, has pleaded guilty to federal fraud charges in Manhattan court. The plea agreement stipulates financial penalties exceeding $19 million and establishes sentencing guidelines at 25 years imprisonment. However, prosecutors have agreed to recommend no more than 12 years if Kwon accepts responsibility for his actions and commits no additional crimes.
The charges carry a statutory maximum of 25 years, and the guilty plea is a significant milestone in the ongoing investigation into the collapse of the Terra ecosystem. The May 2022 collapse sent shockwaves through crypto markets, resulting in hundreds of billions of dollars in lost value.
In the court hearing, Kwon acknowledged making false statements about the operations of Terra’s stablecoin, UST, and knew his statements were misleading investors. This development comes after nearly a year on the run since his capture in March 2023, where he was apprehended attempting to travel using fraudulent passport documentation.
Kwon’s guilty plea marks a major step forward in the ongoing legal proceedings against him. His sentencing is scheduled for December 11, and it remains to be seen what penalty Kwon will ultimately face.
The Terra ecosystem collapse had far-reaching consequences for the industry, resulting in massive losses across the board. The fallout led to increased scrutiny of the crypto market’s governance structures, regulatory frameworks, and security protocols.
It appears that Do Kwon is prepared to accept responsibility for his actions and cooperate with authorities to minimize his sentence.
Source: cryptoslate.com
