Terraform Labs' Do Kwon Pleads Guilty to US Charges
The co-founder of Terraform Labs has pleaded guilty to charges related to the $45 billion crypto meltdown in 2022.
Terraform Labs co-founder Do Kwon has pleaded guilty to conspiracy and wire fraud at a hearing in New York, according to a «Bloomberg» report citing legal proceedings. He has also agreed to forfeit $19.3 million and some properties as part of the plea deal. Kwon originally faced nine charges under the indictment and his sentencing is scheduled for December 11.
«I knowingly agreed with others to defraud, and did in fact defraud, purchasers of cryptocurrencies issued by my company, Terraform Labs,» Kwon said in a statement. «What I did was wrong and I want to apologize for my conduct. I take full responsibility.»
South Korea Sentence
Kwon is also facing charges in his home country in South Korea. After serving half of his sentence, the US will support his spending the remainder of his prison term in South Korea, according to the report, if he abides by the terms of his plea deal and qualifies under the transfer program.
This marks another chapter in the Singapore-based Terraform Labs scandal which saw $45 billion erased from the collapse of stablecoin TerraUSD and sister token Luna in 2022. After the meltdown, Kwon was on the run, spending two years in Montenegro before being arrested for using falsified documents when attempting to fly to Dubai and extradited to the US.
