South Korean crypto fugitive Do Kwon pleads guilty in New York to fraud in US$40b wipeout
Do Kwon, who founded Terraform and nurtured two cryptocurrencies central to the bankruptcy, had faced nine counts in a superseding indictment filed by prosecutors in January 2025 to which he initially pleaded not guilty.
The fallen mogul changed his plea in a hearing before Southern District of New York judge Paul Engelmayer, and will be sentenced on December 11, the docket showed.
He was extradited last year from Montenegro to the United States for his role in a fraud linked to his company's failure, which wiped out about US$40 billion (RM169 billion) of investors' money and shook global crypto markets.
The crypto tycoon was arrested in March 2023 at the airport in Podgorica, the Montenegrin capital, while preparing to board a flight to Dubai, in possession of a fake Costa Rican passport.
Before his arrest in the tiny Balkan nation, he had been on the run for months, fleeing South Korea and later Singapore, when his company went bankrupt in 2022.
Do Kwon's Terraform Labs created a cryptocurrency called TerraUSD that was marketed as a 'stablecoin', a token that is pegged to stable assets such as the US dollar to prevent drastic fluctuations.
Do Kwon successfully marketed them as the next big thing in crypto, attracting billions in investments and global hype.
Media reports in South Korea described him as a 'genius'.
But despite billions in investments, TerraUSD and its sister token Luna went into a death spiral in May 2022.
Experts said Kwon had set up a glorified pyramid scheme, in which many investors lost their life savings.
He left South Korea before the crash and spent months on the run.
Cryptocurrencies have come under increasing scrutiny from regulators after a string of controversies in recent years, including the high-profile collapses of exchanges. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
3 hours ago
- Free Malaysia Today
MACC detains 3 over false claims in Sabah and Selangor
MACC said the suspects will be charged tomorrow and on Thursday. PETALING JAYA : The Sabah Malaysian Anti-Corruption Commission (MACC) has detained a man and a woman on suspicion of submitting claims worth more than RM3.6 million containing false details for the supply of machinery and equipment under a small and medium industry (SMI) assistance programme. According to an MACC source, the two suspects, in their 50s, were detained at about 11am today when they turned up at the Sabah MACC office to have their statements recorded, Bernama reported. 'Initial investigations found that the suspects had submitted two claims containing false particulars under the SMI assistance programme to the industrial development and research department in 2022 and 2023. 'One of the claims was for the supply of machines and entrepreneurs' equipment worth over RM400,000. The other involved MeSTI, My Food and halal certification services worth over RM3.2 million,' the source said. Sabah MACC director S Karunanithy, when contacted, confirmed the arrests. He said both suspects had been released after posting bail and would be charged at the Kota Kinabalu special corruption court on Thursday. Meanwhile, Selangor MACC detained a company director for allegedly submitting documents containing false details involving travel claims and the purchase of air conditioners amounting to about RM33,000. The female suspect, in her 50s, was detained at about 1pm today when she turned up at the MACC office to give her statement. The suspect is believed to have committed the offence between 2022 and 2023. Selangor MACC deputy director Khairul Izwan Karim confirmed the arrest and said the woman would be charged at the Kuala Lumpur sessions court tomorrow.
The Sun
4 hours ago
- The Sun
South Korean president to meet Japan PM in Tokyo ahead of US talks
SEOUL: South Korean President Lee Jae Myung will meet Japan's prime minister in Tokyo next week on his way to a planned sitdown with US President Donald Trump, both governments said Wednesday. Lee had previously announced an August 25 meeting in Washington where he and Trump are to hammer out details of their recent trade deal. His August 23-24 summit with Japanese Prime Minister Shigeru Ishiba will 'solidify the foundation for future-oriented cooperation' between the two leaders, presidential spokeswoman Kang Yu-jung told a press briefing. The two 'will have a frank exchange of views not only on ways to strengthen trilateral cooperation among South Korea, Japan and the United States, but also on regional peace and stability', she added. Tokyo confirmed the visit, describing South Korea as an 'important neighbour Japan should cooperate with as a partner'. 'Under the current strategic environment, the importance of Japan-South Korea relationships and the cooperation among Japan, the United States and South Korea is only growing,' the Ministry of Foreign Affairs said in a statement. In return for avoiding threatened tariffs of 25% to 15%, both countries agreed last month to trade deals with Washington involving announcements of huge investments into the United States. The neighbours enjoyed a warm relationship during the presidency of Lee's predecessor, Yoon Suk Yeol, whose five-year term was cut short by impeachment over his declaration of martial law. Yoon sought to bring the bilateral relationship closer by setting aside historical grievances to better counter North Korea's nuclear threats. But his impeachment and removal from office in April prompted a snap election won by Lee in June. Lee last month told a press conference that Seoul and Tokyo were 'part of the liberal democratic camp, share many common interests in the military sphere, and have significant potential for economic cooperation', adding the two were 'inseparably linked'. – AFP
Malay Mail
7 hours ago
- Malay Mail
South Korean crypto fugitive Do Kwon pleads guilty in New York to fraud in US$40b wipeout
NEW YORK, Aug 13 — South Korean cryptocurrency specialist Do Kwon pleaded guilty to fraud charges in front of a New York judge on Tuesday following his firm's multi-billion-dollar bankruptcy, court filings showed. Do Kwon, who founded Terraform and nurtured two cryptocurrencies central to the bankruptcy, had faced nine counts in a superseding indictment filed by prosecutors in January 2025 to which he initially pleaded not guilty. The fallen mogul changed his plea in a hearing before Southern District of New York judge Paul Engelmayer, and will be sentenced on December 11, the docket showed. He was extradited last year from Montenegro to the United States for his role in a fraud linked to his company's failure, which wiped out about US$40 billion (RM169 billion) of investors' money and shook global crypto markets. The crypto tycoon was arrested in March 2023 at the airport in Podgorica, the Montenegrin capital, while preparing to board a flight to Dubai, in possession of a fake Costa Rican passport. Before his arrest in the tiny Balkan nation, he had been on the run for months, fleeing South Korea and later Singapore, when his company went bankrupt in 2022. Do Kwon's Terraform Labs created a cryptocurrency called TerraUSD that was marketed as a 'stablecoin', a token that is pegged to stable assets such as the US dollar to prevent drastic fluctuations. Do Kwon successfully marketed them as the next big thing in crypto, attracting billions in investments and global hype. Media reports in South Korea described him as a 'genius'. But despite billions in investments, TerraUSD and its sister token Luna went into a death spiral in May 2022. Experts said Kwon had set up a glorified pyramid scheme, in which many investors lost their life savings. He left South Korea before the crash and spent months on the run. Cryptocurrencies have come under increasing scrutiny from regulators after a string of controversies in recent years, including the high-profile collapses of exchanges. — AFP
