The post Terraform Labs Co-Founder Do Kwon Pleads Guilty, Faces Up to 25 Years in Prison appeared first on Coinpedia Fintech News
Do Kwon Admits Guilt in Cryptocurrency Fraud Case
In a significant development in the ongoing legal saga of Terraform Labs, co-founder Do Kwon has pled guilty to charges of defrauding cryptocurrency investors. This marks a dramatic turnabout from his previous denials regarding his involvement in the collapse of the Terra ecosystem. The case has been closely watched by the cryptocurrency community, given the massive financial implications and the scrutiny it has brought upon crypto regulations.
From Online Mockery to Courtroom Confession
Following the catastrophic crash that led to the loss of billions, Kwon had been active on social media, notably using Twitter to mock those affected, sharing jokes, and displaying his wealth. However, the tone shifted starkly in the courtroom. In a statement before the court, Kwon admitted, “I knowingly agreed with others in a scheme to defraud and did defraud investors.” This admission was made during a court session before U.S. District Judge Paul Engelmayer, who had been informed of Kwon’s potential plea change, prompting a hearing scheduled for Tuesday at 10:30 a.m. EDT (1430 GMT) in a Manhattan federal court.
Plea Agreement and Potential Sentencing
In the courtroom, Kwon confirmed his acceptance of a plea agreement. This agreement involves financial penalties exceeding $19 million and a suggested sentencing guideline of 25 years. Importantly, the agreement stipulates that Kwon cannot appeal any sentence of 25 years or less. Should Kwon demonstrate acceptance of responsibility and maintain a clean record until sentencing, prosecutors have agreed to recommend a prison term not exceeding 12 years.
Kwon also agreed to forfeit assets connected to the case and will not contest the factual allegations laid out in the indictment. The fraudulent activities in question spanned from 2018 to 2022, occurring in the Southern District of New York and targeting purchasers of Terraform Labs’ cryptocurrencies, including some based in New York.
When questioned by the judge regarding his awareness of the legality of his actions, Kwon conceded that, while he did not fully comprehend international laws, he understood his actions were wrongful. Sentencing has been set for December 11 at 11 a.m.
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