Disgraced crypto mogul Do Kwon changes plea to guilty in US court
NEW YORK : 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 Dec 11, the docket showed.
He was extradited last year from Montenegro to the US for his role in a fraud linked to his company's failure, which wiped out about US$40 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Drone debris sparks small fire at Russian refinery
The Slavyansk oil refinery in Russia's Krasnodar region is privately owned and has a capacity of about 100,000 barrels per day. (EPA Images pic) KRASNODAR : A small fire ignited by debris from a destroyed drone was promptly doused at the Slavyansk oil refinery in Russia's region of Krasnodar, authorities said today. Russia's air defence units destroyed 46 Ukrainian drones overnight, the defence ministry said on Telegram, including five over the Krasnodar region. The ministry reports only drones downed, not the number launched by Ukraine. 'There are no casualties reported,' the administration said on the Telegram messaging app. 'The fire was promptly extinguished. Emergency and special services are working at the scene,' the administration said. A car caught fire at the refinery, the regional administration added in its post. Reuters was not able to independently verify the reports. There was no immediate comment from Ukraine, which says its strikes inside Russia aim to destroy infrastructure key to Moscow's war efforts, including energy facilities. The Slavyansk refinery is a private plant with a capacity of around 100,000 barrels per day, supplying fuel for both domestic use and export. 'The overnight Ukrainian drone attack also targeted Russia's southern region of Volgograd,' the regional governor said. 'Drone debris fell on a 16-story residential building in the city of Volgograd, forcing residents to leave their homes, the governor,' Andrei Bocharov, said on Telegram. The city of Volgograd is the administrative centre of the broader region of the same name. The Russian defence ministry said its units destroyed 11 drones overnight over Volgograd.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
S&P 500, Nasdaq futures at record highs on September rate cut expectations
Dow E-minis were up 0.23%, S&P 500 E-minis were up 0.17% and Nasdaq 100 E-minis were up 0.23%. (EPA Images pic) NEW YORK : US futures tracking the S&P 500 and the Nasdaq indexes were pinned at record highs today, buoyed by increasing confidence that the Federal Reserve (Fed) could restart its monetary policy easing cycle next month. Signs that US taxes on imports have not fully filtered into headline consumer prices sparked a relief rally on Wall Street in the previous session, with the benchmark S&P 500 marking its first record high close in two weeks. Despite core inflation marking its biggest jump since the start of the year, investors factored in recent weakness in the job market and a shake-up at the Fed as they leaned in favour of a potential dovish move by the central bank in September. Interest rate futures now reflect a 98% chance of a 25 basis points interest rate cut, according to data compiled by LSEG, compared with 88.8% yesterday. The central bank last lowered borrowing costs in December. 'The US inflation reading was in line with market expectations, and the downside risks in the labour market are likely to outweigh inflation concerns,' said Mark Haefele, CIO at UBS Global Wealth Management. 'Our base case remains that the Fed will resume rate cuts at the September meeting and continue cutting for a total of 100 bps,' Haefele said. At 5.35am, Dow E-minis were up 104 points, or 0.23%, S&P 500 E-minis were up 11.5 points, or 0.17% and Nasdaq 100 E-minis were up 54.25 points, or 0.23%. The CBOE volatility index, popularly referred to as Wall Street's fear gauge, dropped to 14.55 – its lowest since January. Rate-sensitive banking stocks such as Bank of America and Citigroup were marginally higher in premarket trading after the broader sector logged its biggest daily rise in three months yesterday. Analysts said a steepening yield curve following the inflation report could help bank earnings as lenders could borrow cheap and lend at a higher rate. Nomura was the first among brokerages to bring forward its easing forecast after the data and now expects the Fed to ease interest rates by 25 basis points in September. Later in the day, investors will weigh in on the remarks of a number of policymakers, especially Chicago Fed president Austan Goolsbee – a federal open market committee voting member this year. Earnings are also in focus. CoreWeave, which is backed by Nvidia, lost 9.2% after the AI data centre operator reported a bigger-than-expected net loss. Investors were also keeping an eye on developments on the China revenue-sharing deal the US government signed with chip companies such as Nvidia and Advanced Micro Devices that the White House said could be expanded to other companies in the sector. Venture Global gained 9.3% after the liquefied natural gas (LNG) major won a legal battle against Shell over its failure to deliver LNG under long-term contracts starting in 2023. Crude prices traded around US$60 per barrel ahead of a virtual meeting between Donald Trump and European leaders on the Russo-Ukraine conflict, two days before the US president meets Russian President Vladimir Putin.
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Solitary cell with mattress on the floor for South Korea's once powerful ex-first lady
South Korea's former first lady Kim Keon Hee was imprisoned after a court approved a warrant for her arrest late yesterday. (EPA Images pic) SEOUL : South Korea's former first lady Kim Keon Hee will spend her first day in jail today in a cell much like the one her husband and ex-president Yoon Suk Yeol occupies as prosecutors pursue the once high-flying couple in a widening criminal probe. Kim was formally booked into the Seoul Nambu Detention Center on the western edge of the capital, a comparatively new correctional facility that opened in 2011 and one of the few run by a female warden. She will be treated in the same way as other inmates but will receive minor adjustments in her daily routine given her status as a high-profile figure, a source familiar with the matter told Reuters. Kim was imprisoned after a court approved a warrant for her arrest late yesterday on the grounds that she might destroy evidence amid an ongoing investigation into allegations of bribery, stock fraud and influence peddling. Kim's lawyers have denied the accusations against her and dismissed as groundless speculation news reports about some of the gifts she allegedly received in return for favours. Kim apologised for causing concern in the country and called herself 'a nobody' as she appeared for questioning last week. Her solitary cell has a small table that can be used as a desk and for eating meals and a floor mattress to sleep on, said the source, who asked not to be identified because he was not authorised to speak to the media. 'Kim will have separate access to a common shower room and be allowed to exercise outdoors for an hour every day except on Sundays, the time staggered to avoid overlap with other inmates,' the source said. Prison will be an entirely new experience for Kim, unlike for her husband who has already spent about 100 days in jail. Yoon is on trial over his botched attempt to impose martial law, on charges of insurrection, an accusation he denies. He has been imprisoned at the Seoul Detention Center, which despite its name is outside the capital to the south. 'Political mind' The former first couple had lived in a spacious apartment in an upscale district of Seoul before Yoon's election as president in May 2022 and had returned there after his ouster for the martial law decree that resulted in a political disaster for him, his party and now for his wife. Kim is a wealthy businesswoman in her own right and most of the couple's assets including the apartment belong to her, according to a government database. Now, Kim will receive the same food as the average inmate, usually traditional Korean fare prepared at a cost of about ₩1,500 (US$1.08) per meal. Today, toast with strawberry jam, sausages and salad were on the menu for breakfast. Kim had not eaten since late yesterday and was not in good health, one of her lawyers told Reuters. 'It was unclear whether she would appear for questioning by prosecutors tomorrow,' the lawyer said. A fine art expert who founded and ran a successful curation agency, Kim has been embroiled in a number of scandals before and after her husband's election in 2022, with the controversies at times overshadowing Yoon's turbulent presidency. Her fashion choices and policy lobbying in areas like promoting a ban on eating dog meat made her controversial in a country where a first lady has typically kept a low profile. Han Dong-soo, a former judge and a prosecutor who worked with Yoon, said Kim had 'a politically strategic mind' and was a driving force behind her husband's ascent to top office. 'After she married Yoon when he was 52, Kim became the main influence of practically all of his thinking and decisions,' Han said. Kim was 39 when they wed. 'Kim Keon Hee chose him,' said Han. 'And she gave him the strategy and energy to be president,' Han added.
