Terraform Labs founder Do Kwon has pleaded guilty to wire fraud and conspiracy to defraud after the US charged him in 2023 over the $40 billion collapse of Terraform.
Inner City Press reported the guilty plea at a New York court hearing today, where Kwon, dressed in a yellow prison jumpsuit, submitted his plea to Judge Engelmayer and waived his rights to trial.
Kwon told the judge, “I knowingly agreed to participate in a scheme to defraud purchasers of cryptocurrencies from my company, Terraform Labs,” adding, “I made false statements about how the peg was restored, and the role of another firm. I knew my statements were false.”
The plea follows months of requested extensions as both US prosecutors and Kwon’s legal team engaged in “productive talks.” In one hearing, it was suggested that a money laundering charge should be litigated in advance.
Two years ago, the US charged Kwon with two counts of commodities fraud, two counts of securities fraud, two counts of wire fraud, two counts of conspiracy to commit said frauds, and one count of money laundering conspiracy.
Read more: Explained: SEC allegations against Do Kwon and Terraform Labs
If found guilty on all counts, he could’ve faced a maximum sentence of 130 years in prison. For the two counts, he faces up to 25 years behind bars.
However as part of the plea agreement, the government will advocate for a sentence of less than 12 years, provided Kwon accepts responsibility and commits no further crimes.
Kwon won’t be allowed to appeal any prison sentence of 25 years or less and would face financial penalties of over $19 million.
Kwon initially pleaded not guilty throughout his extradition debacle in Montenegro, and again pleaded not guilty on January 2 this year after he was finally extradited to the US. His sentencing has been scheduled for December 11.
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Source: https://protos.com/do-kwon-pleads-guilty-to-defrauding-investors-over-40b-terra-crash/