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Do Kwon, co-founder of Terraform Labs, will plead guilty to two criminal charges of conspiracy to defraud and wire fraud related to the 2022 collapse of his $UST and $LUNA cryptocurrencies that erased an estimated $40 billion in value.
The South Korean entrepreneur had pleaded not guilty in January to a nine-count indictment alleging securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.
Prosecutors accused Kwon of misleading investors by falsely claiming an algorithm maintained UST’s $1 peg after its May 2022 depegging, while secretly arranging millions in token purchases to artificially inflate its price.
These alleged misrepresentations helped drive LUNA’s value to $50 billion by spring 2022. Kwon agreed to an $80 million civil fine and crypto transaction ban in a 2024 SEC settlement.
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