Do Kwon Pleads Guilty Over $40 Billion Terra Collapse
Do Kwon, the founder of the failed Terra project, has pleaded guilty to conspiracy to defraud and wire fraud in a plea agreement that includes a proposed 12-year prison sentence and a $19 million financial penalty. This plea comes after Kwon initially denied nine criminal charges related to securities and wire fraud in the U.S. court. The collapse of Terra in 2022 resulted in a $40 billion loss in the crypto market, significantly impacting investors and contributing to a broader crypto downturn. During his court appearance, Kwon acknowledged his role in misleading investors about the stability of his company's cryptocurrencies, citing false statements made regarding the restoration of the project's monetary peg. Kwon's case has garnered attention due to the dramatic fallout from Terra's collapse, which triggered a severe bear market and the bankruptcy of several crypto firms. The authorities have charged Kwon in both the U.S. and South Korea, emphasizing the serious repercussions of his actions on the cryptocurrency ecosystem.
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