Crypto King’ Do Kwon, behind TerraUSD & Luna, pleads guilty to ₹3.5-lakh-crore fraud
The world of cryptocurrency has been plagued by scams and frauds in recent years, and the latest development in this regard has sent shockwaves across the globe. Do Kwon, the South Korean entrepreneur behind the failed cryptocurrencies TerraUSD and Luna, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, who was once hailed as the “Cryptocurrency King” by some, has admitted to his role in the massive fraud, which led to the loss of over $40 billion (nearly ₹3.5 lakh crore) in 2022.
For those who may not be familiar with the TerraUSD and Luna saga, let’s take a brief look at what happened. TerraUSD, also known as UST, was a stablecoin pegged to the value of the US dollar. However, in May 2022, the coin’s value suddenly plummeted, causing a ripple effect in the cryptocurrency market. This led to the collapse of Luna, another cryptocurrency created by Kwon’s company, Terraform Labs. The collapse of these two cryptocurrencies led to a massive loss of value, with investors losing billions of dollars.
Kwon, who co-founded Terraform Labs with Daniel Shin, had built a reputation as a visionary entrepreneur and innovator in the cryptocurrency space. His company, Terraform Labs, aimed to create a decentralized finance (DeFi) platform that would revolutionize the way people transferred value. However, his ambitions were short-lived, as the collapse of TerraUSD and Luna exposed the company’s lack of transparency and accountability.
The investigation into the collapse of TerraUSD and Luna led to charges of conspiracy to defraud and wire fraud being filed against Kwon and his co-founder Shin. Kwon, who had fled to Singapore after the collapse, was eventually arrested and extradited to the United States to face trial.
Now, with Kwon’s guilty plea, the case is set to go to trial. According to reports, Kwon faces a maximum sentence of 25 years in prison for his role in the fraud. However, with his guilty plea, he may be eligible for a reduced sentence of 12 years.
So, what led to Kwon’s decision to plead guilty? According to sources close to the matter, Kwon’s legal team believed that a guilty plea would be in his best interest, as it would allow him to avoid a lengthy and possibly damaging trial. By admitting to his role in the fraud, Kwon may be able to negotiate a more lenient sentence and avoid the stigma of being found guilty by a jury.
The consequences of Kwon’s actions are far-reaching and devastating. Thousands of investors lost their life savings, and many more were left feeling betrayed and disillusioned with the cryptocurrency space. The collapse of TerraUSD and Luna also led to a wider loss of confidence in the stability of the cryptocurrency market, causing a ripple effect across the global financial system.
In conclusion, the case of Do Kwon and the collapse of TerraUSD and Luna serves as a stark reminder of the importance of transparency and accountability in the world of cryptocurrency. While Kwon’s guilty plea may bring some closure to the victims of his fraud, it also highlights the need for greater regulation and oversight in the industry.
