Crypto King’ Do Kwon, Behind TerraUSD & Luna, Pleads Guilty to ₹3.5-Lakh-Crore Fraud
Do Kwon, the South Korean entrepreneur behind the now-defunct cryptocurrencies TerraUSD (UST) and Luna, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, who was once dubbed the “Cryptocurrency King” for his success in the crypto space, co-founded Terraform Labs and is facing 25 years in prison for his role in the collapse of his cryptocurrencies, which led to a loss of nearly ₹3.5 lakh crore (approximately $40 billion) in 2022.
The news of Kwon’s guilty plea was first reported by the Hindustan Times, citing court documents. According to the report, Kwon’s admission of guilt may reduce his sentence from 25 years to 12 years.
TerraUSD and Luna were once hailed as the next big thing in the crypto world, with UST being pegged to the US dollar and Luna being its sister token. However, the project’s collapse in May 2022 led to a catastrophic loss of value, wiping out the wealth of thousands of investors. The collapse also led to a global crypto market downturn, with many other cryptocurrencies experiencing significant losses.
The US Department of Justice (DOJ) had charged Kwon and his co-conspirators with conspiracy to commit wire fraud and substantive wire fraud in connection with the collapse of TerraUSD and Luna. The indictment alleged that Kwon and his co-conspirators had made false and misleading statements about the stability of UST and Luna, and had engaged in a scheme to manipulate the market and pump the value of the cryptocurrencies.
Kwon’s guilty plea comes as a shock to many in the crypto community, who had long admired his entrepreneurial spirit and innovative approach to the industry. However, the collapse of TerraUSD and Luna led to widespread criticism of Kwon and his team, with many arguing that they had engaged in reckless and irresponsible practices.
The collapse of TerraUSD and Luna also led to a significant backlash against the cryptocurrency industry as a whole, with many regulators and policymakers calling for greater oversight and regulation of the sector.
In the wake of Kwon’s guilty plea, the crypto community is left to wonder what went wrong and how such a catastrophic collapse could have occurred. The collapse of TerraUSD and Luna serves as a cautionary tale about the dangers of unchecked speculation and the importance of responsible investment practices.
In conclusion, the guilty plea of Do Kwon, the “Cryptocurrency King”, is a significant development in the ongoing saga of TerraUSD and Luna. While the exact sentence Kwon will serve remains to be determined, his admission of guilt marks a significant turning point in the case and serves as a reminder of the importance of responsible practices in the cryptocurrency industry.
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