Cryptocurrency entrepreneurs face up to 25 years in prison over the $4 billion collapse of Terrausd and Luna Tokens.
South Korean cryptocurrency Mogul Do Kwon pleaded guilty to US fraud in the case linked to the $40 billion collapse of Terrausd and Luna Tokens.
Kwon, co-founder of Singapore-based Terraform Labs, entered a petition in the Southern District of New York on Tuesday, according to court filings.
Kwon admitted to one count that conspiring to commit merchandise fraud, securities fraud and wire fraud, and one count that committed wire fraud.
As part of his plea, the code entrepreneur agreed to confiscate more than $19 million in revenue from his crimes, according to prosecutors.
Kwon plead not guilty to nine counts in January in cases including securities fraud, wire fraud and money laundering conspiracy.
“Kwon committed one of the biggest scams in history using technology promises and the happiness of investment around cryptocurrencies,” said a lawyer for Jay Clayton.
“Kwon raised tens of millions of funds for the Terraform ecosystem by committing to self-mitigation stability. It was too late for the market to discover that the ecosystem was unstable.
Kwon, who is scheduled to be sentenced to prison on December 11th, faces a maximum penalty of 25 years in prison.
Kwon was extradited to the US in December 2024 and after spending months from authorities, he was arrested in Montenegro.
