Latest news with #US19.3
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
‘What I did was wrong': 33-year-old crypto mogul pleads guilty over $61 billion collapse
Terraform co-founder Do Kwon pleaded guilty to charges in a US fraud prosecution tied to the $US40 billion ($61 billion) collapse of the TerraUSD stablecoin in 2022. Kwon pleaded guilty to conspiracy and wire fraud under an agreement with prosecutors at a hearing in New York on Tuesday. The 33-year-old, dressed in a yellow prison jumpsuit, also agreed to forfeit $US19.3 million and some properties as part of the plea deal. 'I knowingly agreed with others to defraud, and did in fact defraud, purchasers of cryptocurrencies issued by my company, Terraform Labs,' Kwon said, reading from a statement. 'What I did was wrong and I want to apologise for my conduct. I take full responsibility.' Kwon was charged in both South Korea and the US in connection with the implosion of Singapore-based Terraform's TerraUSD, which shook the crypto world in 2022 and helped trigger the meltdown of cryptocurrency exchange FTX. The guilty plea averts a trial set for next year before US District Judge Paul Engelmayer. Loading He was charged in 2023 and was extradited to the US in January, after spending almost two years in Montenegro, where he'd been arrested and convicted of using a phony passport while a fugitive from charges in his native South Korea. US prosecutors said the longest sentence they will seek under the plea deal is 12 years. The maximum US sentences are five years for the conspiracy count and 20 years for the wire fraud charge. Sentencing is scheduled for December 11. He had faced nine charges under the indictment.
The Age
4 days ago
- Business
- The Age
‘What I did was wrong': 33-year-old crypto mogul pleads guilty over $61 billion collapse
Terraform co-founder Do Kwon pleaded guilty to charges in a US fraud prosecution tied to the $US40 billion ($61 billion) collapse of the TerraUSD stablecoin in 2022. Kwon pleaded guilty to conspiracy and wire fraud under an agreement with prosecutors at a hearing in New York on Tuesday. The 33-year-old, dressed in a yellow prison jumpsuit, also agreed to forfeit $US19.3 million and some properties as part of the plea deal. 'I knowingly agreed with others to defraud, and did in fact defraud, purchasers of cryptocurrencies issued by my company, Terraform Labs,' Kwon said, reading from a statement. 'What I did was wrong and I want to apologise for my conduct. I take full responsibility.' Kwon was charged in both South Korea and the US in connection with the implosion of Singapore-based Terraform's TerraUSD, which shook the crypto world in 2022 and helped trigger the meltdown of cryptocurrency exchange FTX. The guilty plea averts a trial set for next year before US District Judge Paul Engelmayer. Loading He was charged in 2023 and was extradited to the US in January, after spending almost two years in Montenegro, where he'd been arrested and convicted of using a phony passport while a fugitive from charges in his native South Korea. US prosecutors said the longest sentence they will seek under the plea deal is 12 years. The maximum US sentences are five years for the conspiracy count and 20 years for the wire fraud charge. Sentencing is scheduled for December 11. He had faced nine charges under the indictment.
7NEWS
23-04-2025
- Automotive
- 7NEWS
Musk to spend more time with Tesla as profits dive
Elon Musk says he will dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced a backlash faced angry protests over Musk's leadership of a federal government jobs-cutting group that has divided the country and sparked protests. Tesla's first-quarter profits have plunged by more than two-thirds amid a backlash against Elon Musk's electric car company that has hurt sales and sent its stock plunging. The Austin, Texas, company on Tuesday said quarterly profits fell by 70 per cent to to $US409 million ($A638 million), or 12 cents a share - far below analyst estimates. Tesla's revenue fell nine per cent to $US19.3 billion ($A30.1 billion) in the January through March period, below Wall Street's forecast. Along with his involvement with the US government and DOGE, Musk has publicly supported far-right politicians in Europe and alienated potential buyers there also. Many investors have also complained Musk is too distracted with his Trump administration role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington. Tesla stock has fallen more than 40 per cent in 2025 but rose slightly in after-hours trading. Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable. 'They're not particularly surprising given that deliveries were down,' Goldstein said, adding that the company is still generating cash. 'It was good to see positive cash flow.' Tesla will hold a conference call to review the quarterly results and give a company update later Tuesday afternoon. Tesla investors will be listening closely for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June. The company that once dominated EVs is also facing fierce competition for the first time. Earlier in 2025 Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk. Investors expect Tesla will be hurt less by the Trump administration's tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won't be completely unscathed. It sources some materials from abroad that will now face import taxes. Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.
Sydney Morning Herald
22-04-2025
- Automotive
- Sydney Morning Herald
Tesla's profits plummet to five-year low as Musk pays the price of Trump
Tesla's profits have plummeted to a five-year low as the electric car company counts the cost of Elon Musk's alliance with Donald Trump and the US president's trade war. The electric car company's net income slumped by 71per cent to $US409 million ($261 million) in the three months to the end of March, marking its least profitable quarter since 2020. Sales came in at $US19.3 billion, down 9 per cent and well below market estimates. The figures lay bare the financial impact of Tesla chief Elon Musk's enthusiastic support for Donald Trump. Left-wing drivers have mounted a boycott of the company's cars in response to Musk's decision to take a position in the Trump White House and the president's tariffs are also impacting the business. 'Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,' the electric carmaker warned. Tesla also admitted that 'changing political sentiment' was damaging sales. Deliveries of its vehicles fell 13 per cent in the first three months of the year, Tesla reported earlier in April. The company warned that the twin impact of tariffs and boycotts 'could have a meaningful impact on demand for our products in the near term.' The slump has prompted questions over whether the billionaire's association with Mr Trump's MAGA movement has done permanent damage to the company. The results came hours after Scott Bessent, the US Treasury Secretary, said that America's trade war with China was not sustainable, telling a JPMorgan investor summit there was 'a big deal to be done.' The admission is a sign that officials are growing wary of the economic cost of Trump's aggressive trade war, which has prompted a sell-off of US stocks, debt and the US dollar.
The Age
22-04-2025
- Automotive
- The Age
Tesla's profits plummet to five-year low as Musk pays the price of Trump
Tesla's profits have plummeted to a five-year low as the electric car company counts the cost of Elon Musk's alliance with Donald Trump and the US president's trade war. The electric car company's net income slumped by 71per cent to $US409 million ($261 million) in the three months to the end of March, marking its least profitable quarter since 2020. Sales came in at $US19.3 billion, down 9 per cent and well below market estimates. The figures lay bare the financial impact of Tesla chief Elon Musk's enthusiastic support for Donald Trump. Left-wing drivers have mounted a boycott of the company's cars in response to Musk's decision to take a position in the Trump White House and the president's tariffs are also impacting the business. 'Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,' the electric carmaker warned. Tesla also admitted that 'changing political sentiment' was damaging sales. Deliveries of its vehicles fell 13 per cent in the first three months of the year, Tesla reported earlier in April. The company warned that the twin impact of tariffs and boycotts 'could have a meaningful impact on demand for our products in the near term.' The slump has prompted questions over whether the billionaire's association with Mr Trump's MAGA movement has done permanent damage to the company. The results came hours after Scott Bessent, the US Treasury Secretary, said that America's trade war with China was not sustainable, telling a JPMorgan investor summit there was 'a big deal to be done.' The admission is a sign that officials are growing wary of the economic cost of Trump's aggressive trade war, which has prompted a sell-off of US stocks, debt and the US dollar.
