Particle.news
Download on the App Store
26 ARTICLES
·
2w ago

Do Kwon Pleads Guilty to Two Federal Counts in TerraUSD Collapse

The admission advances resolution of the U.S. criminal case over the $40 billion implosion after his extradition from Montenegro

Image
Image
Do Kwon pleads guilty to defrauding crypto investors in $40 billion Terra collapse
Image

Overview

  • Kwon entered guilty pleas to conspiracy to defraud and wire fraud on August 12 before Judge Paul Engelmayer in the Southern District of New York
  • His plea agreement calls for asset forfeiture and more than $19 million in financial penalties with prosecutors recommending roughly 12 years behind bars
  • He faces up to 25 years in prison under federal statutes and is slated for sentencing on December 11 in Manhattan
  • The guilty plea follows the May 2022 loss of TerraUSD’s dollar peg that triggered a $40 billion market collapse and global crypto contagion
  • Kwon remains liable under a parallel SEC civil judgment totaling about $4.5 billion and could encounter further legal actions abroad