Stablecoin Terra CEO reaches settlement with US Justice Department
Do Kwon, co-founder of the company behind the collapsed stablecoin TerraUSD, has admitted guilt in his criminal case in the United States and reached a settlement with the US Attorney’s Office.
Terraform Labs was issuer of the stablecoin TerraUSD, which collapsed in May 2022. During a price collapse on the crypto markets, the value of the hitherto fourth-largest stablecoin plummeted dramatically. In the process, damages of at least $40 billion were reportedly incurred. The collapse of Terra and its associated crypto currency Luna was followed by further bankruptcies that summer.
Kwon pleaded guilty to two of the original nine charges in a hearing in the Southern District of New York. He will surrender about $20 million plus additional assets. In return, prosecutors promise no further prosecution of the remaining charges and will seek up to 12 years in prison.
“I deliberately conspired with others to defraud and actually defrauded buyers of crypto coins issued by my company Terraform Labs. What I did was wrong, and I apologise for my behaviour. I take full responsibility,” Kwon said.
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