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 the “Cryptocurrency King” by some, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, the co-founder of Terraform Labs, was behind the cryptocurrencies TerraUSD (UST) and Luna, which lost a staggering $40 billion (approximately ₹3.5 lakh crore) in 2022. This massive loss has sent shockwaves throughout the global crypto market, leaving many investors reeling.
Kwon, who was facing a possible 25-year prison sentence, has now admitted to the charges and may be eligible for a reduced sentence of 12 years. This development comes as a relief to many who were waiting with bated breath for the outcome of the case.
For the uninitiated, TerraUSD (UST) was a stablecoin, designed to maintain a stable value by pegging it to the US dollar. Luna, on the other hand, was a cryptocurrency that was linked to UST. However, in May 2022, the value of UST and Luna suddenly plummeted, wiping out millions of dollars in investments. The collapse of the Terra ecosystem led to a global crypto market meltdown, with many investors losing their life savings.
The Terra crisis was widely reported on, with many experts and regulators questioning the sustainability of the crypto market. The collapse of Terra also led to a wider debate about the lack of regulation in the crypto space, with many calling for stricter oversight to prevent such disasters in the future.
Kwon’s guilty plea comes after a long and arduous legal battle. In October 2022, he was charged with conspiracy to commit wire fraud and wire fraud, among other charges. Kwon had initially denied any wrongdoing, but it appears that he has now changed his tune.
According to the indictment, Kwon and his co-conspirators defrauded investors by misrepresenting the stability of TerraUSD and the security of the Terra ecosystem. They also allegedly manipulated the market by selling large quantities of UST and Luna, causing their values to plummet.
The consequences of Kwon’s actions are still being felt today. Many investors are still reeling from the losses they suffered during the Terra crisis, and the collapse of the Terra ecosystem has left a lasting impact on the global crypto market.
In a statement following his guilty plea, Kwon apologized for his actions, saying, “I am deeply sorry for the harm caused to the Terra community and the losses suffered by the investors.” He also expressed his willingness to cooperate with authorities and to make amends.
While Kwon’s guilty plea is a significant development, it is unclear what the full implications will be. The court will now need to determine the appropriate sentence, which could range from 12 to 25 years in prison. Kwon’s legal team will likely argue for a reduced sentence, citing his willingness to cooperate and apologize for his actions.
In conclusion, Do Kwon’s guilty plea is a major milestone in the Terra crisis saga. While it is welcome news for many who were affected by the collapse of the Terra ecosystem, it is also a sobering reminder of the risks and consequences of investing in the crypto market. As the crypto space continues to evolve, it is essential that investors and regulators alike remain vigilant and take steps to prevent such disasters from occurring in the future.
