‘Cryptocrash King’ Do Kwon Pleads Guilty to Fraud

Do Kwon, the former head of Terraform Labs, has pleaded guilty in a New York court to two counts of fraud linked to the 2022 collapse of cryptocurrencies TerraUSD and Luna, which wiped out more than $40bn in investor value.

Wearing a yellow prison jumpsuit, the South Korean entrepreneur admitted making «false and misleading statements» about efforts to restore TerraUSD’s $1 peg, apologising for his conduct.

Under a plea deal, prosecutors will seek no more than a 12-year sentence, though Judge Paul Engelmayer could impose up to 25 years when sentencing takes place on 11 December. Kwon will forfeit up to $19.3 mln, several properties, and pay restitution.

Kwon, who initially fled South Korea before being arrested in Montenegro and extradited to the US, still faces charges in his home country. Prosecutors say he secretly arranged market interventions to prop up TerraUSD while telling investors the system was self-stabilising.

Kursiv Uzbekistan also reports that market analyst Tony Severino warns Bitcoin could lose half its value if it fails to sustain momentum, with £47,000 as a key downside targe.