Terraform Labs founder Do Kwon pleads guilty to fraud over $40 billion crypto collapse

Terraform Labs co-founder Do Kwon has pleaded guilty to two US charges of fraud, after his actions led to the collapse of $40 billion in crypto investments. Kwon, along with others, was a key player in the 2022 crypto crash. He created a "stablecoin" called TerraUSD, which was supposed to be pegged to the US dollar, and a floating crypto coin called Luna. When TerraUSD fell below its $1 peg, Kwon secretly arranged for a trading firm to buy the currency to boost its price, but he lied to investors about stabilizing the coin. This led to the collapse of both currencies, resulting in many regular people losing their life savings, while venture capital firms profited. Kwon was put on wanted lists in the US and South Korea, and was eventually extradited to the US, where he pleaded guilty to charges including securities fraud, wire fraud, commodities fraud, and money-laundering conspiracy. He may receive a reduced sentence of 12 years maximum, and will be transferred to South Korea after serving half his US sentence.