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| TerraUSD: 'Cryptocrash king' Do Kwon pleads guilty to fraud | TerraUSD: 'Cryptocrash king' Do Kwon pleads guilty to fraud |
| (32 minutes later) | |
| Do Kwon appeared in New York court wearing a yellow prison jumpsuit on Tuesday | |
| A South Korean former tech executive accused of helping to spark a cryptocurrency crisis that cost investors more than $40bn (£31.8bn) has pleaded guilty to two criminal counts of fraud. | |
| Do Kwon was the boss of Singapore-based Terraform Labs, which operated two cryptocurrencies - TerraUSD and Luna - both of which collapsed in 2022, triggering a wider sell-off in the crypto market. | Do Kwon was the boss of Singapore-based Terraform Labs, which operated two cryptocurrencies - TerraUSD and Luna - both of which collapsed in 2022, triggering a wider sell-off in the crypto market. |
| The US says he was responsible for the failure of the two digital currencies, accusing him of "orchestrating a multi-billion dollar crypto asset securities fraud". | The US says he was responsible for the failure of the two digital currencies, accusing him of "orchestrating a multi-billion dollar crypto asset securities fraud". |
| As part of the plea deal, prosecutors have agreed to refrain from seeking a sentence longer than 12 years. Kwon is due to be sentenced on 11 December. | As part of the plea deal, prosecutors have agreed to refrain from seeking a sentence longer than 12 years. Kwon is due to be sentenced on 11 December. |
| Kwon's guilty plea in a New York court comes after a lengthy legal battle. | Kwon's guilty plea in a New York court comes after a lengthy legal battle. |
| He initially fled South Korea after a warrant for his arrest was issued in 2023, eventually ending up in Montenegro where he was arrested and jailed before being extradited to the US. | He initially fled South Korea after a warrant for his arrest was issued in 2023, eventually ending up in Montenegro where he was arrested and jailed before being extradited to the US. |
| US prosecutors said Kwon misrepresented features that were supposed to keep the so-called stablecoin at $1 without outside intervention. | US prosecutors said Kwon misrepresented features that were supposed to keep the so-called stablecoin at $1 without outside intervention. |
| They alleged that in 2021, Kwon arranged for a trading firm to surreptitiously purchase millions of dollars worth of the token to restore TerraUSD's value, even as he told investors that a computer algorithm called Terra Protocol was responsible. | They alleged that in 2021, Kwon arranged for a trading firm to surreptitiously purchase millions of dollars worth of the token to restore TerraUSD's value, even as he told investors that a computer algorithm called Terra Protocol was responsible. |
| Prosecutors say the alleged misrepresentation prompted a wide array of investors to buy Terraform's offerings, which helped prop up the value of the company's Luna token, which was closely linked to TerraUSD. | Prosecutors say the alleged misrepresentation prompted a wide array of investors to buy Terraform's offerings, which helped prop up the value of the company's Luna token, which was closely linked to TerraUSD. |
| The following year, Kwon's TerraUSD and the Luna cryptocurrency crashed. | The following year, Kwon's TerraUSD and the Luna cryptocurrency crashed. |
| "In 2021, I made false and misleading statements about why [TerraUSD] regained its peg," he said in court on Tuesday. | "In 2021, I made false and misleading statements about why [TerraUSD] regained its peg," he said in court on Tuesday. |
| "What I did was wrong and I want to apologise for my conduct," he added. | "What I did was wrong and I want to apologise for my conduct," he added. |
| Kwon had originally pleaded not guilty to nine counts stemming from the crash, including securities and wire fraud, and money laundering conspiracy. | Kwon had originally pleaded not guilty to nine counts stemming from the crash, including securities and wire fraud, and money laundering conspiracy. |
| He had faced up to 135 years in prison if convicted of the charges in the original indictment. | He had faced up to 135 years in prison if convicted of the charges in the original indictment. |
| As part of his plea deal, Kwon agreed to refrain from challenging the allegations in the indictment. | As part of his plea deal, Kwon agreed to refrain from challenging the allegations in the indictment. |
| He must also forfeit up to $19.3m plus interest and several properties and pay restitution. | He must also forfeit up to $19.3m plus interest and several properties and pay restitution. |
| While prosecutors have agreed to limit their requested sentence to 12 years, Judge Paul Engelmayer maintained that he was entitled to prescribe a longer sentence. | While prosecutors have agreed to limit their requested sentence to 12 years, Judge Paul Engelmayer maintained that he was entitled to prescribe a longer sentence. |
| That sentence could be up to 25 years in prison. | That sentence could be up to 25 years in prison. |
| He still faces charges in South Korea, according to his attorney. | He still faces charges in South Korea, according to his attorney. |