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Do Kwon Pled Guilty to Two Charges, Faces Potential 12-Year Sentence
In a significant development, Terraform Labs co-founder and former CEO Do Kwon has pleaded guilty to two federal fraud charges. The news comes as a shockwave throughout the cryptocurrency industry, following Kwon’s capture in March 2023.
According to reports, Kwon admitted to orchestrating a scheme that resulted in over $40 billion in losses when LUNA and TerraUSD tokens collapsed in May 2022. The disgraced CEO acknowledged making false statements about Terra’s operations, knowing his statements were misleading investors. He stated, “Between 2018 and 2022 in the SDNY [Southern District of New York] and elsewhere I knowingly agreed to participate in a scheme to defraud purchasers of cryptocurrencies from my company, Terraform Labs. I made false statements about how the peg was restored, and the role of another firm. I knew my statements were false.”
As per court records, Kwon is facing potential penalties exceeding $19 million. The charges carry a statutory maximum sentence of 25 years, but prosecutors have agreed to recommend no more than 12 years if Kwon accepts responsibility and commits no additional crimes.
Kwon’s sentencing is set for December 11, which marks the end of his legal ordeal. It remains to be seen how this development will impact the cryptocurrency market and the reputation of Terraform Labs.
Please note that our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate.
Source: cryptoslate.com
