Crypto King’ Do Kwon, behind TerraUSD & Luna, pleads guilty to ₹3.5-lakh-crore fraud
In a shocking turn of events, South Korean entrepreneur Do Kwon, known as the ‘Cryptocurrency King’ by some, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, the mastermind behind the cryptocurrencies TerraUSD and Luna, which lost a staggering $40 billion (nearly ₹3.5 lakh crore) in 2022, has faced 25 years in prison for his alleged crimes. However, with his guilty plea, his sentence may be reduced to 12 years.
Do Kwon, the co-founder of Terraform Labs, was arrested in March 2022 after the collapse of his cryptocurrency empire, which had gained significant attention and popularity in the crypto space. The collapse of TerraUSD and Luna sent shockwaves across the global financial markets, causing widespread losses and financial instability.
The guilty plea comes as a major blow to Kwon, who had previously denied any wrongdoing and claimed that the collapse of his cryptocurrencies was due to external factors beyond his control. However, the US Department of Justice (DOJ) has alleged that Kwon and his co-conspirators engaged in a massive fraud scheme, which involved deceiving investors and manipulating the prices of TerraUSD and Luna.
According to the DOJ, Kwon and his co-conspirators used the funds raised from investors to support their lavish lifestyles, including buying luxury homes and cars, rather than investing in legitimate business ventures. The scheme also involved manipulating the prices of TerraUSD and Luna to make it appear as if they were legitimate and stable investments, when in reality, they were highly volatile and prone to collapse.
The investigation into Kwon’s activities began in May 2022, when the US Securities and Exchange Commission (SEC) filed a complaint against him and his co-conspirators, alleging that they had engaged in a massive fraud scheme. The SEC alleged that Kwon and his co-conspirators had made false and misleading statements about the value and stability of TerraUSD and Luna, and had used the funds raised from investors to support their own personal wealth.
The collapse of TerraUSD and Luna sent shockwaves across the global financial markets, causing widespread losses and financial instability. The incident highlighted the risks and uncertainties associated with investing in cryptocurrencies, and raised concerns about the lack of regulation and oversight in the crypto space.
In a statement, the US Attorney for the Southern District of New York, Damian Williams, said, “Do Kwon’s guilty plea is a major victory for the rule of law and a reminder that those who engage in fraud and deceit will be held accountable. We will continue to work tirelessly to protect investors and ensure that those who engage in fraudulent activities are brought to justice.”
Kwon’s guilty plea is a significant development in the ongoing investigation into the collapse of TerraUSD and Luna. The incident has raised important questions about the regulation and oversight of the crypto space, and has highlighted the need for greater transparency and accountability in the industry.
In conclusion, the guilty plea of ‘Crypto King’ Do Kwon is a major blow to his reputation and a significant development in the ongoing investigation into the collapse of TerraUSD and Luna. The incident highlights the risks and uncertainties associated with investing in cryptocurrencies, and underscores the need for greater regulation and oversight in the industry.
