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Terra founder Do Kwon pleads guilty, facing up to 12 years in prison.
On August 13, according to reports, South Korean crypto entrepreneur Kwon Do-hyung ( acknowledged two counts of fraud in a New York federal court on Tuesday. The 33-year-old co-founder of Terraform Labs developed the TerraUSD and LUNA tokens, which collapsed in 2022, resulting in losses of approximately $40 billion.
At a hearing presided over by Federal Judge Paul Engelmayer in the Southern District of New York, Kwon Do-hyung pleaded guilty to two charges of conspiracy to commit fraud and wire fraud. In January of this year, he had pleaded not guilty to nine counts including securities fraud, wire fraud, commodity fraud, and money laundering.
During the court hearing, Do Kwon apologized in court: "I concealed the truth about the trading company's intervention in restoring the peg and made false statements. My actions were wrong."
Although the maximum statutory penalty is 25 years, the prosecution has agreed to recommend no more than 12 years in prison if the defendant pleads guilty and shows remorse. The presiding judge will issue a sentencing decision on December 11. This case is one of the major cases during the crypto assets winter of 2022, when several digital asset companies went bankrupt.