#BinanceHODLerPLUME #ETHStakingExitWatch
The "genius" who lost $40 billion pleads guilty to cryptocurrency fraud
Do Kwon, the South Korean entrepreneur in the field of cryptocurrencies, who is behind two digital currencies that lost an estimated $40 billion in 2022, is guilty of two counts of conspiracy to commit fraud and electronic fraud.
Kwon, 33 years old, who co-founded Terraform Labs based in Singapore, and developed the "Terra USD" (TerraUSD) and "Luna" (Luna) currencies, pleaded guilty at a hearing in a New York court.
The Terraform Labs founded by Do Kwon created a cryptocurrency called "Terra USD," marketed as a "stablecoin," which is a token linked to stable assets like the U.S. dollar to prevent sharp fluctuations.
Do Kwon successfully marketed it as the rising trend in the world of cryptocurrencies, attracting billions of dollars in investments and gaining global attention.
Media reports in South Korea described him as a "genius."
However, despite billions of dollars in investments, the two currencies ("Terra USD" and "Luna") spiraled into collapse in May 2022. Experts said that Kwon created a massive pyramid scheme, in which many investors lost their savings.
Kwon had pleaded not guilty in January to a 9-count indictment, including securities fraud, electronic fraud, commodity fraud, and conspiracy to commit money laundering.
After being accused of misleading investors in 2021 about the "Terra USD" currency, Kwon pleaded guilty to the two charges under a deal with the U.S. Attorney's Office in Manhattan, which brought the charges against him.
Kwon successfully marketed the "Terra USD" currency as the rising trend in the world of cryptocurrencies (Shutterstock)
