Terraform Labs co-creator, Do Kwon, has confessed to committing a pair of offenses within the United States.
During a court session held on August 12 in New York, as reported by various news sources, he entered a guilty plea concerning both conspiracy to commit fraud and wire fraud.
According to coverage by Inner City Press, Kwon informed the presiding judge that, spanning the years 2018 to 2022, he participated in a scheme designed to mislead individuals purchasing cryptocurrencies issued by Terraform Labs.
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He admitted to disseminating inaccurate details concerning the recovery of a stablecoin’s linked value and the supposed involvement of a separate organization. He also verified his collaboration with others in the execution of this scheme, acknowledging its illegality.
As part of his agreement with legal authorities, Kwon is expected to pay a fine of $19 million. While these charges carry a maximum cumulative prison sentence of 25 years, prosecutors have consented to not seek a sentence exceeding 12 years.
The final sentencing is scheduled for December 11. Judge Paul A. Engelmayer emphasized that the determination of the final sentence rests solely with him.
Separately, on August 5, the SEC reached an agreement with Huynh Tran Quang Duy, the person behind MyConstant, a now-defunct lending platform. Intrigued? Learn more about the case.