Crypto Mogul Do Kwon Admits Guilt in Major Fraud Case

Do Kwon, a South Korean cryptocurrency entrepreneur, plans to plead guilty to fraud charges in a U.S. court. He's accused of misleading investors and manipulating the TerraUSD and Luna currencies, leading to significant financial losses. Kwon had previously pleaded not guilty to similar charges.

Do Kwon, the 33-year-old South Korean cryptocurrency entrepreneur responsible for Terraform Labs, is set to plead guilty to conspiracy and wire fraud charges in a U.S. court. This marks a significant turn in his legal battle over the collapse of TerraUSD and Luna, digital currencies he developed.

The courtroom revelation follows accusations from prosecutors that Kwon misled investors about TerraUSD, a stablecoin allegedly backed by a computer algorithm to maintain its value. Instead, Kwon reportedly manipulated the currency's price via a high-frequency trading firm, boosting the value of related token Luna to $50 billion.

Kwon's legal woes culminate with an agreement to a hefty $80 million fine and a transaction ban as part of a $4.55 billion settlement with the SEC. Amidst the fallout from digital currency slumps in 2022, Kwon's case highlights broader scrutiny on cryptocurrency titans.

(With inputs from agencies.)