Summary of Recent Developments

Do Kwon, the founder of Terraform Labs, has entered a guilty plea for his role in deceiving investors related to the collapse of the UST stablecoin. His admission came during a court appearance where he accepted responsibility for participating in a fraud scheme.

Key Points:

• Kwon acknowledged he engaged in activities that led to defrauding users, agreeing to assist prosecutors for a potential maximum sentence of 12 years.
• Kwon may need to forfeit up to $19 million as part of the plea deal.
• While he has settled with U.S. authorities, charges remain against him in South Korea.

Court Proceedings

In a dramatic courtroom setting, Kwon, clad in a prison uniform, reported his admission that he knowingly took part in a scheme aimed at deceiving buyers of TerraUSD. Judge Paul Engelmayer outlined potential consequences of a maximum of 135 years in prison based on initial charges, although this could be mitigated to 25 years through plea negotiations.

Future Sentencing

Kwon is scheduled for sentencing on December 11 and continues to face unresolved legal actions in his home country.

Quotes

Kwon stated: “In 2021, I made false and misleading statements about why [UST] regained its peg,” indicating where he admits fault in his actions.

He has previously criticized skeptics of the stablecoin, showcasing a complex relationship with his creations and exposure to the legal ramifications of his decisions.