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, dubbed by some as the “Cryptocurrency King”, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, who was behind the cryptocurrencies TerraUSD and Luna, which lost a staggering $40 billion (nearly ₹3.5 lakh crore) in 2022, co-founded Terraform Labs and faced a maximum sentence of 25 years in prison.
However, with his guilty plea, Kwon’s sentence may be reduced to 12 years. The news has sent shockwaves through the cryptocurrency community, with many questioning how Kwon managed to amass such wealth and then lose it all in a matter of months.
TerraUSD and Luna were two of the most popular cryptocurrencies in the world, with TerraUSD being the 10th largest cryptocurrency by market capitalization. However, in May 2022, the value of both currencies plummeted, wiping out the life savings of thousands of investors.
The collapse of TerraUSD and Luna led to a global financial crisis, with many investors left reeling from the sudden loss of their wealth. Kwon, who was known for his charismatic personality and innovative ideas, was hailed as a genius by many, but his actions have now been exposed as a massive fraud.
According to the indictment, Kwon and his co-conspirators created a scheme to defraud investors by misrepresenting the value of TerraUSD and Luna. They claimed that the currencies were backed by a reserve of US dollars and other assets, but in reality, there was no such reserve.
Instead, Kwon and his co-conspirators used the money raised from investors to fund their own lavish lifestyles, including buying luxury properties and cars. They also used the money to invest in other cryptocurrencies and assets, trying to make a quick profit.
The scheme was uncovered when investors began to notice that the value of TerraUSD and Luna was not as stable as Kwon had claimed. As the value of the currencies plummeted, investors lost their shirts, and the cryptocurrency market was left reeling.
Kwon’s guilty plea is a significant blow to the cryptocurrency community, which has been reeling from the collapse of TerraUSD and Luna. Many investors are still trying to come to terms with the fact that they lost their life savings in a scheme that was touted as a revolutionary new way to invest in the future.
The guilty plea also raises questions about the lack of regulation in the cryptocurrency space. Many critics have argued that the lack of regulation allowed Kwon and his co-conspirators to get away with their scheme for so long.
The US Department of Justice (DoJ) has praised Kwon’s guilty plea, saying that it marks a significant victory in the fight against fraud and corruption. “Do Kwon’s guilty plea is a testament to the dedication and expertise of our investigators and prosecutors,” said the DoJ in a statement.
Kwon’s guilty plea is also a warning to other cryptocurrency entrepreneurs who may be considering similar schemes. The collapse of TerraUSD and Luna has sent a clear message that fraud and corruption will not be tolerated in the cryptocurrency space.
In conclusion, Do Kwon’s guilty plea is a significant blow to the cryptocurrency community, and a warning to other entrepreneurs who may be considering similar schemes. The collapse of TerraUSD and Luna has sent a clear message that fraud and corruption will not be tolerated, and that those who engage in such activities will be held accountable.
