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, widely known as the ‘Cryptocurrency King’, has pleaded guilty to conspiracy to defraud and wire fraud. Kwon, the mastermind behind the failed cryptocurrencies TerraUSD (UST) and Luna, which lost a staggering $40 billion (nearly ₹3.5 lakh crore) in 2022, has faced the music and admitted to the charges.
As the co-founder of Terraform Labs, Kwon’s actions have sent shockwaves through the cryptocurrency world, leaving countless investors and enthusiasts reeling from the devastating losses. The magnitude of the fraud has led to severe consequences, with Kwon now facing a maximum sentence of 25 years in prison. However, his admission of guilt may potentially reduce his sentence to 12 years.
TerraUSD and Luna were once touted as the next big thing in the cryptocurrency world, with UST being pegged to the US dollar and Luna being a stablecoin linked to UST. However, the scheme began to unravel in May 2022, when the value of UST began to plummet, causing a ripple effect that led to the collapse of Luna and the loss of tens of billions of dollars.
The investigation into the collapse of TerraUSD and Luna has been ongoing for several months, with the US Department of Justice (DOJ) leading the charge. In a statement, the DOJ said that Kwon and his co-conspirators had engaged in a “massive fraud” that had “devastating consequences” for thousands of investors.
Kwon’s admission of guilt comes as a surprise to many, given his previous denial of any wrongdoing. However, the evidence against him was reportedly overwhelming, with investigators uncovering a complex web of deceit and manipulation that had been perpetrated by Kwon and his team.
The collapse of TerraUSD and Luna has sent a shockwave through the cryptocurrency world, leading to widespread criticism of the lack of regulation and oversight in the industry. The incident has also raised questions about the accountability of cryptocurrency executives and the need for greater transparency and accountability in the industry.
In the aftermath of the collapse, there have been numerous lawsuits filed against Kwon and his co-conspirators, with many investors seeking compensation for their losses. The incident has also led to a renewed focus on the need for greater regulation and oversight in the cryptocurrency industry, with many calling for stricter rules and guidelines to prevent similar incidents from occurring in the future.
Kwon’s admission of guilt is a significant development in the case, and it remains to be seen what sentence he will ultimately receive. While 12 years in prison is a substantial sentence, it is still a far cry from the 25-year maximum sentence he faced.
As the investigation continues, it is clear that the consequences of Kwon’s actions will be felt for a long time to come. The collapse of TerraUSD and Luna has had a profound impact on the cryptocurrency world, and it has raised important questions about the accountability of cryptocurrency executives and the need for greater regulation and oversight in the industry.
As we look to the future, it is clear that the cryptocurrency world must learn from the mistakes of the past. Greater transparency and accountability are needed, and it is up to regulators, investors, and executives to work together to create a safer and more sustainable industry.
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