“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 (approximately ₹3.5 lakh crore) in 2022, co-founded Terraform Labs and now faces a maximum sentence of 25 years in prison. However, with his admission of guilt, his sentence may be reduced to 12 years.
Do Kwon’s rise to fame began in 2018 when he co-founded Terraform Labs, a cryptocurrency startup that aimed to revolutionize the digital asset space. His brainchild, TerraUSD (UST), was a stablecoin pegged to the value of the US dollar, while Luna was a token that could be used to stabilize the value of UST. The duo quickly gained popularity, with UST becoming one of the most widely used stablecoins in the world.
However, in May 2022, the cryptocurrency market experienced a devastating collapse, with UST and Luna losing a combined $40 billion in value. The collapse led to a global cryptocurrency market downturn, with many investors and traders losing significant amounts of money. The incident was widely reported and sparked widespread outrage, with many calling for accountability and justice.
Fast-forward to 2023, and Do Kwon has finally pleaded guilty to the charges brought against him. In a statement, Kwon admitted to conspiring with others to commit wire fraud, which involved defrauding investors and traders by misrepresenting the value and stability of UST and Luna.
The charges against Kwon stem from a complaint filed by the US Department of Justice in October 2022, alleging that the entrepreneur and his company, Terraform Labs, had engaged in a massive scheme to defraud investors. The complaint alleged that Kwon and his accomplices had misrepresented the value of UST and Luna, claiming that they were stable and secure, when in reality they were highly volatile and prone to collapse.
Kwon’s admission of guilt is a significant development in the case, as it marks the first time he has taken responsibility for his actions. The entrepreneur had previously denied any wrongdoing, claiming that the collapse of UST and Luna was due to market forces beyond his control.
The consequences of Kwon’s guilty plea are still unclear, but he faces a maximum sentence of 25 years in prison, as well as a fine of up to $250,000. However, with his admission of guilt, his sentence may be reduced to 12 years, according to legal experts.
The guilty plea has sent shockwaves through the cryptocurrency community, with many investors and traders expressing relief that justice is being served. However, the collapse of UST and Luna has also left a trail of destruction, with many investors and traders still reeling from the financial losses they suffered.
In conclusion, the guilty plea of Do Kwon, the “Cryptocurrency King”, marks a significant moment in the ongoing saga of the collapse of UST and Luna. While the consequences of his actions are still being determined, it is clear that the entrepreneur’s admission of guilt is a significant step towards accountability and justice.
