Encryption correspondent
Shalini Nagarajan
Encryption correspondent
Shalini Nagarajan
Involve
Do Kwon, one of the founders of TerraForm Labs, is expected to admit guilt in a fraud case in the United States linked to the collapse of 2022 from Stablecoin Terrausd (UST), which has a value of $ 40 billion and sent shocks through the cryptocurrency industry.
American boycott judge, Paul Engemayer The hearing is to be changed For Tuesday 10:30 am in the Manhattan Federal Court. On Monday’s order, Judge Koon ordered that he be ready to explain in detail how the law broke if he confessed to guilt.
The 33 -year -old South Korean businessman acknowledged that he was not guilty in January after a long dispute of his surrender over whether he would be tried for the first time in the United States or in South Korea.
Montenegro is arrested for months
Both countries have accused KWON with regard to the collapse of Terrausd, the Al -Khwarizmi -based Stablecooin, who is based in Singapore, to keep the designer to maintain one connection to one to the US dollar through the mint and burns mechanism with its sister’s symbolic sister.
This mechanism failed in May 2022, causing Terrausd to lose its connection and caused the collapse of the market that contributed to the fall of the FTX encryption. The collapse surveyed billions in investor wealth and damaged confidence in the digital asset markets.
Coone was running away months ago before his former financial manager and Terrafur, Han Chang John, were arrested in Montenegro in March 2023 while trying to board a private plane linked in Dubai using fake passports. He spent months in detention, as Montenegro was weighing competing delivery requests from Washington and torrents.
KWON 92 % stake reflects personal relationships with the company’s collapse
The United States was already He won the case of civil fraud against Coone and Terrafour In April 2024. Moreover, a jury in New York found that it had misled investors about the stability of Terrausd. The jury also concluded that they falsely claimed that Chay, an application of famous Korean payments, was used by Terraform for transactions.
Under a settlement, KWON and Terraform agreed to pay $ 4.47 billion. In addition, they committed to end the operations. They also pledged to use the remaining assets to pay creditors. It is worth noting that KWON personally owns 92 % of the company.
In the American criminal case, KWON faced an accusation regulations for nine workers including securities fraud, wire fraud, fraud on goods, and conspiracy to commit money laundering. Judge Engilmayer issued instructions to the defendant’s legal team to prepare a detailed statement covering every KWON plan to accept.
Steel acknowledgment can form American prosecutions and South Korea
Court documents indicate that the confession of guilt can simplify procedures in the United States. However, it may also affect the ongoing investigations in South Korea. There, KWON faces separate fees for fraud and financial misconduct under the laws of capital markets.
If accepted, acknowledgment of guilt will represent a dramatic turn in one of the most prominent prosecutions in the encryption sector. It will also close a chapter on the epic that spanned the continents, court halls, and regulatory judicial authorities.
The result of the KWON case can determine important precedents of how to trial international fraud in the future.
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2025-08-12 02:52:00
