“Cryptocrash King” Do Kwon is called guilty of fraud

The former CEO of Technology in South Korea has acknowledged to help stimulate an encrypted currency crisis, which cost investors more than 40 billion dollars (31.8 billion pounds), guilty of two criminal charges of fraud.

Do Kwon was the head of Terraform Labs, who is based in Singapore, who was running two Terrausd and Luna – both of them collapsed in 2022, which led to a wider sale in the encryption market.

The United States says he was responsible for the failure of the two digital currencies, accused of “coordination of fraud in encrypted assets with billions of dollars coded.”

As part of the guilt acknowledgment, the general prosecutors agreed to refrain from searching for a longer penalty than 12 years. KWON is scheduled to be sentenced to December 11.

“Acknowledgment of guilt in KWON” emphasizes the importance of accountability in the digital assets sector. “

He added that those who contributed to the collapse of the Terraform laboratories will be calculated by the company and that the assets will be recovered in the interest of the demands.

KWON’s guilt comes in the New York Court after a lengthy legal battle.

He initially fled South Korea yet His arrest order was issued in 2023In the end it ends in the Black Montenegro Arrested and prison Before existence It was delivered to the United States.

American prosecutors said that Coone distorted the features that were supposed to maintain the so -called stablecoin at one dollar without external interference.

They claimed that in 2021, KWON arranged a commercial company to buy millions of dollars from the distinctive symbol to restore the value of Terrausd, even when investors told the computer algorithm called Protocol was responsible.

Prosecutors say that the alleged distortions prompted a wide range of investors to buy Terraform offers, which helped support the company’s Luna code value, which was closely related to Terrausd.

The following year, Terrausd Kwon and Luna Cryptocurrency were destroyed.

“In 2021, I made wrong and misleading statements about the reason for the restoration of (Terrausd) of its connection,” he said in the court on Tuesday.

“What I did was wrong and I want to apologize for my behavior,” he added.

Coone originally acknowledged that he was not guilty on nine charges resulting from the accident, including securities and wire fraud, and conspiracy of money laundering.

He had faced up to 135 years in prison if he was convicted of accusations in the original indictment.

As part of his call deal, Koon agreed to refrain from challenging allegations in the indictment.

He must also lose up to $ 19.3 million in addition to interest and many real estate and payment.

While the general prosecutors agreed to reduce the imprisonment sentence to 12 years, Judge Paul Engemayer confirmed that he is entitled to describe a longer penalty.

This sentence can reach 25 years in prison.

He still faces charges in South Korea, according to his lawyer.