Do Kwon pleads guilty in $40 billion crypto fraud case
STORY: Do Kwon, the South Korean entrepreneur behind the failed cryptocurrencies TerraUSD and Luna,
pleaded guilty at a New York court on Tuesday…
to two U.S. charges of conspiracy to defraud and wire fraud.
He admitted to misleading investors and committing fraud while leading Terraform Labs…
the Singapore-based company that launched the two tokens.
Their collapse in 2022 wiped out an estimated $40 billion in investor wealth.
At his hearing, Kwon admitted to making false and misleading statements about the stability of TerraUSD,
a so-called stablecoin designed to maintain a value of $1.
Prosecutors allege that when its value fell below that dollar peg, he told investors an algorithm restored the coin’s…
