Do Kwon to plead guilty to US conspiracy, fraud charges in $40 billion crypto collapse
NEW YORK (Reuters) - Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, is planning to plead guilty on Tuesday totwo charges ofconspiracy to defraud and wire fraud, a judge said at a U.S. court hearing.
U.S. District Judge Paul Engelmayer is expected to ask Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, a series of questions before formally asking him to enter the plea.
Kwon, 33, had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
He was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1.
Kwon allegedly told investors a computer algorithm known as "Terra Protocol" had restored the coin's value when it slipped below its peg in May 2021, when in fact he arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price.
Prosecutors with the Manhattan U.S. Attorney's office said that false claim and others drove retail and institutional investors to buy Terraform products and boost the value of Luna, a more traditional token developed by Kwon that fluctuated in value but was closely linked to TerraUSD, to $50 billion by the spring of 2022.
Kwon hadagreed in 2024 topay an $80 million civil fineand be banned from crypto transactions as part of a $4.55 billion settlement that he and Terraform reached with the U.S. Securities and Exchange Commission.
Kwon has been detained since his extradition from Montenegro late last year. He is one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies.
(Reporting by Luc Cohen in New York; Editing by Chizu Nomiyama )
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
43 minutes ago
- The Star
Better chip sales drive UMS Integration showing
The Singapore-listed company said its second–quarter net profit rose 10.1% year-on-year to S$10.26mil. PETALING JAYA: UMS Integration Ltd, which completed its secondary listing on Bursa Malaysia this month, reported a stronger net profit in the second quarter ended June 30, 2025 (2Q25) on increased semiconductor segment sales. In a filing with Bursa Malaysia, the Singapore-listed company said its second–quarter net profit rose 10.1% year-on-year (y-o-y) to S$10.26mil, while revenue rose 20.4% y-o-y to S$67.35mil. On a y-o-y basis, the stronger sales were driven by a 27% increase in its semiconductor segment which was offset by a 14% decline in aerospace sales and a 7% dip in revenue in the 'others' segment. The lower aerospace revenue was mainly due to a delivery push-out by one of its customers, while the softer performance of the others segment was caused mainly by the weaker material and tooling distribution business. Semiconductor integrated system sales leapt 36% y-o-y from S$20.8mil in 2Q24 to S$28.2mil in 2Q25. Component sales also climbed 20% y-o-y from S$25.5mil to S$30.6mil during the same period. Meanwhile, compared to 1Q25, both the semiconductor and the others segments rose 21% and 9% respectively, while the aerospace business fell 13%. Cumulatively, for the first-half of financial year 2025 (1H25), UMS' net profit improved by 5.1% y-o-y to S$20.09mil. Revenue for the six months increased by 13.7% y-o-y to S$125mil. Semiconductor sales rose 17% y-o-y to S$107.4mil in 1H25 while Aerospace revenue edged up 2% to S$11.5mil. Sales in the others segment dipped 9% to S$6mil. Semiconductor integrated system sales increased 14% y-o-y to S$47.9mil in 1H25.
The Star
3 hours ago
- The Star
Mexican president taps Maria del Carmen Bonilla as deputy finance minister
FILE PHOTO: Maria del Carmen Bonilla Rodriguez poses for a portrait during an International Women's Day event hosted by the Mexican stock exchange in Mexico City, Mexico March 8, 2023. REUTERS/Toya Sarno Jordan/File Photo MEXICO CITY (Reuters) - Mexican President Claudia Sheinbaum has nominated Maria del Carmen Bonilla as deputy finance minister, putting to rest weeks of speculation about who will assume the post. Bonilla, one of several candidates, has overseen the ministry's public credit and international affairs unit since 2021. A congressional committee will vote on Bonilla's nomination on Wednesday, according to a congressional agenda. If confirmed, she will occupy the position vacated in March by Edgar Amador, when Sheinbaum appointed him Mexico's finance minister. According to Mexican newspaper El Economista, Bonilla oversaw the issuance of a $12 billion debt offering to support state-owned oil company Pemex. Bonilla holds a degree in finance from the Universidad Anahuac in Mexico City. She previously served as investment coordinator for the Mexican Social Security Institute and as an asset manager and trader. (Reporting by Raúl Cortés Fernández; Writing by Brendan O'Boyle and Benjamín Mejías Valencia; editing by Cassandra Garrison and Emily Green)
The Star
3 hours ago
- The Star
Indonesia's tech firm adds 29.5 bln USD, 2 mln jobs to economy
JAKARTA, Aug. 12 (Xinhua) -- Indonesia's largest digital firm, PT GoTo Gojek Tokopedia (GoTo), generated 480.72 trillion rupiahs (29.5 billion U.S. dollars) in economic value in 2024 and created over 2.03 million jobs, a report showed Tuesday. The study by the Jakarta-based Prasasti Center for Policy Studies found GoTo's direct economic contribution reached 355.33 trillion rupiahs (21.8 billion dollars), with indirect impacts of 125.39 trillion rupiahs (7.7 billion dollars). The company's activities also helped cut the national poverty rate by 0.45 percentage points. "GoTo has delivered real social impact by creating jobs, increasing incomes, and expanding financial inclusion for MSMEs and informal workers," said research director Gundy Cahyadi. He called for stronger government policies and incentives to bolster local digital industries as part of an equitable and sustainable growth strategy. GoTo, the country's largest internet technology firm, offers services in mobility, delivery, payments, financial services, and merchant technology solutions.
