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TerraForm Labs Founder Do Kwon Pleads Guilty to Fraud Charges, Faces Up to 25 Years in Prison
TerraForm Labs Founder Do Kwon Pleads Guilty to Fraud Charges, Faces Up to 25 Years in Prison
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BTCCSquare news:
TerraForm Labs founder Do Kwon has admitted guilt to two counts of fraud in a New York federal court, marking a stark reversal from his earlier denials. The charges stem from the collapse of the Terra ecosystem in 2022, which wiped out $40 billion in investor funds. Kwon now faces a maximum sentence of 25 years, though prosecutors have agreed to cap it at 12 years as part of a plea deal.
The disgraced entrepreneur must forfeit $19.3 million in illicit gains plus interest. His sentencing hearing is scheduled for mid-December. Prosecutors allege Kwon deceived investors about TerraUSD's stability mechanism, falsely claiming the algorithmic stablecoin maintained its dollar peg through the Terra protocol.
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