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, also known as the ‘Crypto King’, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, who was behind the collapse of cryptocurrencies TerraUSD and Luna, which lost a staggering $40 billion (approximately ₹3.5 lakh crore) in 2022, has admitted to the charges and is now facing a potential prison sentence.
Kwon, who co-founded Terraform Labs, a company that developed and managed the cryptocurrencies, had been accused of perpetrating one of the largest fraud schemes in the history of the cryptocurrency market. The collapse of TerraUSD and Luna led to a financial crisis, causing widespread losses and panic among investors, with some losing their life savings.
The guilty plea comes as a significant blow to Kwon, who had been facing up to 25 years in prison if convicted. However, with his admission of guilt, the sentence may be reduced to as little as 12 years.
The case against Kwon was brought by the US Department of Justice, which accused him of orchestrating a scheme to defraud investors and manipulate the market. The indictment alleged that Kwon and his co-conspirators used sophisticated tactics, including fake trading volume and manipulated prices, to deceive investors and make millions of dollars in profits.
The collapse of TerraUSD and Luna was a result of a combination of factors, including a lack of regulatory oversight and a failure to maintain liquidity in the market. However, many experts believe that Kwon’s actions, including his decision to burn billions of dollars in cryptocurrency to maintain the value of TerraUSD, were a major contributor to the collapse.
The loss of $40 billion in value is staggering, and the impact on investors has been devastating. Many individuals who invested in TerraUSD and Luna lost their life savings, and some have been left with significant financial debts. The collapse of the cryptocurrencies has also led to a loss of confidence in the cryptocurrency market, with many investors pulling their money out of the market.
The guilty plea by Kwon is a significant victory for the US Department of Justice, which has been working to hold accountable those responsible for the collapse of TerraUSD and Luna. The case is a reminder of the importance of regulatory oversight and the need for investors to be cautious when investing in the cryptocurrency market.
In a statement, the US Department of Justice said, “The defendant’s guilty plea is a significant step towards holding him accountable for his role in the collapse of TerraUSD and Luna, which resulted in significant financial losses for investors.”
The case against Kwon is a complex one, and the guilty plea is likely to be just the beginning. The US Department of Justice is expected to continue to investigate and prosecute those responsible for the collapse of the cryptocurrencies. The case is a reminder that the cryptocurrency market is not immune to fraud and manipulation, and that those who engage in illegal activities will be held accountable.
As the case against Kwon continues to unfold, it is clear that the fallout from the collapse of TerraUSD and Luna will be felt for some time to come. The loss of confidence in the cryptocurrency market is a significant setback, and it will likely take time for investors to regain their trust.
In conclusion, the guilty plea by Do Kwon, also known as the ‘Crypto King’, is a significant development in the case against him. The collapse of TerraUSD and Luna was a devastating event that had far-reaching consequences, and the guilty plea is a reminder of the importance of regulatory oversight and the need for investors to be cautious when investing in the cryptocurrency market.
