The encryption thinker Do Kwon, known as “The Cryptocurrency King”, is being guilty of fraud charges

New York (AP) – Mogul Cryptocurrency Do Kwon acknowledged on Tuesday to charges two frauds arising from the collapse of $ 40 billion in an encrypted currency currency system that has promised investors their money safe.

Coone, 33, has entered the name “The Cryptocurrency King”, to an appeal at the Manhattan Federal Court.

According to the Confederation of Guil Signed by KWON and prosecutors, the government said it will not seek to prison for more than 12 years as long as KWON is in line with the conditions of the deal, although the instructions for issuing federal rulings have been recommended for about 25 years imprisonment. The ruling was appointed on December 11.

The authorities said that investors all over the world lost money at TerraForm Labs, which is worth $ 40 billion. Coone participated in the establishment of the company in 2018.

the May 2022 collapse It came after the company claimed that Terrausd was “Stablecoin” reliable.

Terrausd is designed as “Stablecoin”, a currency associated with stable assets like the dollar to prevent severe price fluctuations. However, about $ 40 billion in the market value of Terrausd holders and its floating sister business, Luna, was erased after Stablecoin fell below the 1 dollar.

Coone has been delivered To the United States on December 31 of Montenegro after March 23, 2023, he was arrested while traveling on a false passport in Europe.

As part of his call for one of the conspiracy charges for committing fraud in commodities, securities fraud, wire fraud, and the second charge of wire fraud, KWON also agreed to lose more than $ 19 million, the amount that the authorities said are illegal returns. He will also lose his interest in Terraform and his encrypted currencies.

His lawyer, Sean Hakker, said that the petition means that Coone accepted the responsibility for making wrong and misleading data for investors.

In a statement, the lawyer said his client “bears the responsibility for misleading the Terra community.”

In a press release, American lawyer Jay Clayton said Coon “used the technological promise and investment reference about the encrypted currency to commit one of the biggest fraud in history.”

He said that investors all over the world have suffered billions of dollars in losses.