Do Kwon, co-founder of Terraform Labs, acknowledged in court that he intentionally participated in a scheme to defraud cryptocurrency investors.

Previously denying all charges, Kwon changed his attitude, pleaded guilty, and agreed to a financial penalty along with a maximum sentence of 25 years in prison during the trial held in Manhattan, USA.

MAIN CONTENT

  • Do Kwon admitted to deliberately defrauding cryptocurrency investors in court.

  • Signed a plea agreement with a proposed maximum sentence of 25 years and a fine of over $19 million.

  • The sentence will be announced on December 11, with the possibility of a reduced sentence for cooperation and no new crimes.

What did Do Kwon admit in court?

Do Kwon publicly acknowledged that he coordinated with others to carry out a fraudulent scheme to defraud cryptocurrency investors.

In contrast to his previous denial, during the trial at the federal court in Manhattan, Kwon asserted that he 'deliberately agreed to and committed investor fraud.' This marks a significant turning point in the lawsuit related to the collapse of the Terra ecosystem, which had previously caused heavy losses for many investors.

Kwon told the court: “I know my actions were wrong even though I did not fully understand international legal regulations.”

Do Kwon, Manhattan trial, 2024

What is Kwon's plea agreement and expected sentence?

Kwon signed a plea agreement, accepting a financial penalty of over $19 million, and committed not to appeal if he receives a sentence of 25 years or less.

The plea agreement states that if Kwon takes full responsibility and does not commit any new offenses before the trial, the prosecutor will recommend a sentence of no more than 12 years in prison. Additionally, Kwon also agrees to forfeit assets related to the case. The trial is expected to take place on December 11, 2024.

Details about the scope and timeframe of the fraudulent activities

Kwon admitted that the fraudulent activities occurred between 2018 and 2022 in the southern New York area, targeting investors purchasing cryptocurrencies issued by Terraform Labs.

This conduct has caused significant harm to both domestic and international user and investor communities, leading to the collapse of the Terra ecosystem, setting a precedent warning about risks in cryptocurrency investment.

This trial sends a clear message that fraudulent activities in the cryptocurrency space will be prosecuted strictly under U.S. law.

Legal expert Axman Lee, 2024

Frequently Asked Questions

How does Do Kwon's guilty plea affect investors?

Pleading guilty helps verify fraudulent activities, creating a legal basis to protect the rights of affected investors.

What is the maximum sentence Kwon could receive?

The maximum sentence is 25 years in prison but may be reduced to no more than 12 years if he cooperates and does not commit any new crimes.

When is Do Kwon's sentencing date set?

Sentencing is scheduled for 11 a.m. on December 11, 2024, at the federal court in Manhattan.

Can Do Kwon appeal after receiving a sentence?

According to the agreement, if the sentence does not exceed 25 years, Kwon cannot appeal.

When did the fraudulent activities occur?

The scope of the fraudulent activities is determined from 2018 to 2022.

Source: https://tintucbitcoin.com/do-kwon-nhan-toi-nguy-co-tu-25-nam/

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