South Korean cryptocurrency mogul Do Kwon has pleaded guilty to fraud in the United States in a case tied to the $40bn collapse of the TerraUSD and Luna tokens.
Kwon, the cofounder of Singapore-based Terraform Labs, entered the plea at the Southern District of New York on Tuesday, according to court filings.
Kwon admitted to one count of conspiring to commit commodities fraud, securities fraud and wire fraud, and one count of committing wire fraud.
As part of his plea, the crypto entrepreneur agreed to forfeit more than $19m in proceeds from his crimes, according to prosecutors.
Kwon had in January entered a plea of not guilty to nine counts in the case, including securities fraud, wire fraud and money laundering conspiracy.
“Do Kwon used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history,” US Attorney Jay Clayton said.
“Kwon attracted tens of billions in funds to Terraform’s ecosystem by promising a self-stabilising stablecoin. By the time the markets discovered the ecosystem was unstable, it was too late: the system collapsed, and investors around the world suffered billions in losses.”
Kwon, who is due to be sentenced on December 11, faces a maximum penalty of 25 years in prison.
Kwon was extradited to the US in December 2024, following his arrest in Montenegro after spending months on the run from authorities.
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