Do Kwon, co-founder of Terraform Labs, has admitted to committing two crimes in the United States.
In a court appearance on August 12 in New York, he pleaded guilty to conspiracy to defraud and wire fraud.
According to a report from Inner City Press, Kwon told the judge that between 2018 and 2022, he took part in a plan to mislead people who bought cryptocurrencies from Terraform Labs.
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He admitted making false claims about how a stablecoin’s price peg was restored and about the involvement of another company. He also confirmed that he worked with others to carry out this plan and knew it was against the law.
As part of his deal with prosecutors, Kwon will pay $19 million in financial penalties. While the two charges could lead to a maximum prison term of 25 years if sentences run one after the other, prosecutors agreed not to ask for more than 12 years.
His sentencing is scheduled for December 11. Judge Paul A. Engelmayer made it clear that the final decision on the sentence is his alone.
On August 5, the US Securities and Exchange Commission (SEC) reached a settlement with Huynh Tran Quang Duy, the founder of the now-closed lending platform MyConstant. What did the agency say? Read the full story.