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Do Kwon Pledges Guilty on 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 charges. The plea agreement comes as a shocking turn of events in the ongoing investigation into the collapse of the Terra ecosystem, which led to widespread losses exceeding $40 billion.
According to reports, Do Kwon entered guilty pleas to conspiracy to defraud and wire fraud before Judge Paul Engelmayer at the Southern District of New York courthouse. The disgraced cryptocurrency executive acknowledged making false statements about Terra’s operations and knowing his assertions were misleading investors.
Kwon’s defense stated that between 2018 and 2022, he knowingly agreed to participate in a scheme to defraud purchasers of cryptocurrencies from his company, Terraform Labs. He also admitted to fabricating information regarding the restoration of the pegged stablecoin UST and the role of another firm, which were designed to mislead investors.
Under the plea agreement, Kwon will face financial penalties exceeding $19 million and is subject to sentencing guidelines that could result in a maximum sentence of 25 years. However, prosecutors have agreed to recommend no more than 12 years if Kwon accepts responsibility for his actions and commits no additional crimes.
The court has scheduled sentencing for December 11 at 11 am, where Kwon will learn the extent of his prison term. FatMan, a prominent figure in the post-Terra collapse investigations, commented on the guilty plea outcome, stating that Do Kwon’s admission is likely to result in an imprisonment term ranging from 15 to 20 years.
Kwon’s arrest and subsequent extradition followed nearly a year-long absence after the Terra ecosystem’s implosion. His capture took place in March 2023 while attempting to travel using fraudulent passport documentation.
This development brings closure to the investigation into one of the most infamous cases in cryptocurrency history, with significant implications for investors who lost their funds during the collapse.
Source: cryptoslate.com
