Do Kwon Pleads Guilty to Fraud Charges in Terra Collapse
Do Kwon, the creator of Terra/Luna, pleaded guilty to conspiracy and wire fraud charges after an extensive extradition process. He previously entered a not guilty plea.
Key Details
- Kwon admitted to fraudulently misleading investors about the safety of TerraUSD (UST) and Luna (LUNA).
- UST's collapse in 2022 contributed to a broader downturn in the crypto market.
- Kwon's statements between 2018 and 2022 misrepresented the stability of UST.
- The Department of Justice recommends a prison sentence of up to 12 years.
- Kwon can apply for international transfer after serving 50% of his sentence.
- Outstanding charges remain against him in South Korea.
Kwon's admission highlighted the scope of the fraud affecting purchasers globally, including in South Korea and New York.
Additional News
- Paxos filed for a national bank trust charter.
- Patrick Witt appointed as senior adviser on crypto to the White House.
- Wall Street and consumer advocates urge Congress to amend the GENIUS Act regarding stablecoins.
- OFAC sanctioned entities linked to Garantex.
- The U.S. Fed dissolved its Novel Activities Supervision Program overseeing crypto issues.
- SEC Chair Paul Atkins discussed updates to custody guidance.
- Hong Kong tightened custody standards for licensed crypto exchanges.
This Week
- Tuesday: Do Kwon pled guilty to charges related to the Terra/Luna ecosystem collapse.