cryptd.in

암호화폐 친화적인 인재를 위한 대체 링크드인

Terraform’s Do Kwon Pleads Guilty to Its Collapse

-

by

cryptd.in
in

One of the most prolonged cases in the crypto world surrounding the infamous Terra has finally seen its former head accept responsibility for his crimes.

Court documents reveal the magnitude of the offences, and hopefully, this can bring some peace to the affected.

Owning Up to the Wrongdoings

The U.S attorney for the Southern District of New York, Jay Clayton, 발표 yesterday that Do Hyeong Kwon (Do Kwon) pled guilty to one count of conspiring to commit commodities, securities, and wire fraud, and one count of committing wire fraud connected to deceitful schemes at Terraform.

The platform was touted by the charged CEO as a self-contained, decentralized financial ecosystem, leveraging pioneering blockchain technology and offering a variety of financial products, including its own cryptocurrency, payment system, stock market, and savings bank.

The harsh reality was that investors and users of Terraform were unaware that none of the instruments offered functioned as intended and were manipulated to believe that everything was working optimally. Do Kwon admitted guilt before U.S. District Judge Paul A. Engelmayer.

“Do Kwon used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history,” said Clayton.

“Kwon attracted tens of billions in funds to Terraform’s ecosystem by promising a self-stabilizing stablecoin. By the time the markets discovered that the ecosystem was unstable, it was too late: the system collapsed, and investors around the world suffered billions of dollars in losses.”

The allegations stated in the Superseding Indictment, along with further court proceedings and public filings, note that the company was founded in 2018. It distinguished its blockchain from others by issuing algorithmic stablecoins under the “Terra Protocol.”

According to reports, these stablecoins maintained their value regardless of changes in underlying market conditions. Around September 2020, the dollar-pegged TerraUSD (“UST”) was launched, and promotional materials claimed that under the protocol, one UST can always be exchanged for $1 worth of the blockchain’s native token, LUNA, and vice versa.

The Numerous False Pretenses

Over the years, the company, alongside its various entities, developed and advertised several financial products as decentralized finance applications, aimed at increasing the number of users and transactions on the Terra blockchain. Some of them include:

  • Chai, a Korean payments platform that was supposedly using the Terra blockchain to process transactions around June 2019, was untrue, as traditional methods and networks were used for processing.
  • Mirror Protocol, which went live in December 2020, enabled users to create, buy, and sell synthetic versions of assets, such as stocks listed on US exchanges, using the now obsolete blockchain. In reality, Terraform had control over the protocol and utilized trading bots to manipulate the prices of the assets that it issued.
  • The Luna Foundation Guard Ltd (“LFG”) was a public entity launched around January 2022 that purportedly maintained a reserve worth billions of dollars in cryptocurrency, known as the “LFG Reserve,” to maintain UST’s dollar peg. This was claimed to be regulated by an independent governing body, when in fact, Terraform reigned over it.

Do Kwon received funding from several investment firms in the United States and elsewhere, with the primary agreement being to either purchase or loan the cryptocurrencies created on the Terra blockchain. At the peak of the corporation’s growth, the co-founder who was charged became one of the most affluent leaders in the industry.

Terraform’s pinnacle was around the start of 2022, when the market cap of UST and LUNA went over $50 billion, with the majority of this expansion attributed to misrepresentations about the company and its products. By May 2022, the dollar peg of the UST had already begun to break down, a trend that had started the previous year.

They managed to cover this up in 2021, but failed to do so the following year, which led to their collapse and the loss of over $40 billion. A short time later, arrest warrants and an Interpol Red Notice were issued against the former CEO.

Around the end of March 2023, Do Kwon was captured in Europe while using a fake passport. Authorities from the US submitted a request for his extradition shortly after that, and there was considerable back and forth regarding where he would be charged and tried. He was deported to the United States at the end of last year.

Earlier in June, he pleaded not guilty, but eventually succumbed to the numerous charges against him. As part of his plea, he will have to forfeit $19 million in proceeds from the fraudulent schemes and will be sentenced by Judge Engelmayer on December 11, 2025.

게시물 Terraform’s Do Kwon Pleads Guilty to Its Collapse 에 처음 등장 크립토포테이토.

댓글

답글 남기기

이메일 주소는 공개되지 않습니다. 필수 필드는 *로 표시됩니다

최신 피드

인기 카테고리

ko_KR 한국어
ko_KR 한국어 en_US English ro_RO Română et Eesti ja 日本語 ru_RU Русский de_DE Deutsch es_ES Español zh_CN 简体中文 fr_FR Français zh_TW 繁體中文 pt_PT Português it_IT Italiano pl_PL Polski tr_TR Türkçe nl_NL Nederlands id_ID Bahasa Indonesia el Ελληνικά uk Українська bg_BG Български cs_CZ Čeština fi Suomi hu_HU Magyar lv Latviešu valoda lt_LT Lietuvių kalba nb_NO Norsk bokmål sk_SK Slovenčina sl_SI Slovenščina sv_SE Svenska

웹사이트 검색

인기 스토리

태그

#AlexeyPertsev (1) #BidenCryptoBan (1) #BidenElection (1) #BinanceVsCoinbase (1) #B비트코인 (377) #BitcoinETF (3) #B비트코인기초 (1) #B비트코인 취급 (1) #B비트코인가격 (5) #B비트코인가격수준 (1) #B비트코인펌프 (1) #B비트코인예치 (1) #B비트코인서지 (1) #BitcoinTop (1) #Bitfinex (1) #B비트 단위 (1) #브레이스브리지캐피털 (1) #BRC20토큰 (1) #BTC취득 (1) #B울리스틱 예측 (1) #BullishSentiment (1) #C중국광업 (1) #CPIP리뷰 (1) #CryptoAsset (2) #CryptoBattle (1) #CryptoBoom (1) #CryptoExpert (1) #CryptoInsights (1) #CryptoMania (1) #CryptoMarket (4) #CryptoPrediction (1) #CryptoPredictions (1) #CryptoRegulation (2) #CryptoTakeoff (1) #CryptoTiming (1) #CryptoTips (1) #CryptoTreasury (1) #CryptoUncertainty (1) #DerivativeJump (1) #Dogecoin (65) #DogecoinGains (1) #DogecoinVolume (1) #DutchCourt (2) #ECommerce (1) 1TP5테엘살바도르비트코인 (1) 1TP5테더리움 (64) 1TP5테더리움통증 (1) 1TP5테더리움가격 (1) 1TP5전문가 의견 (1) #FedRateCut (1) #FiatCurrency (1) #FinancialImpact (1) #FinancialPrivacy (1) #FirmShutdown (1) #FrozenAccounts (1) #IllicitFunds (1) #인플레이션데이터 (1) #투자 (1) #투자손실 (1) #일본기업 (1) #LegalAction (1) #LegalImpact (1) #법률 (1) #라이트닝 네트워크 (1) 1TP5시장분석 (3) 1TP5시장 모니터링 (1) 1TP5시장 예측 (1) 1TP5시장 예측 (1) #MarketProjection (1) 1TP5마켓지원 (1) 1TP5시장변동성 (1) #M결혼 (1) #MemeCoin (5) #MemeCoins (2) #M광부수익성 (1) #MoneyLaundering (2) #MtGox (3) 1TP5북한암호화 (1) 1TP5노보그라츠예측 (1) #P가격 마일스톤 (1) #P가격 예측 (2) #P가격 질문 (1) #PriceSurge (1) #P형량 (1) #QuantAnalysis (1) 1TP5규제압력 (1) #SEC안티크립토 (1) #ShibaInu (5) #SocialBuzz (1) 1TP5기술분석 (1) #Toncoin (3) #TornadoCash (3) #TornadoCashDev (1) 1TP5토네이도캐시개발자 (1) #UKCrypto (1) #업사이드 잠재력 (1) #USCongress (1) #와이오밍랜드 (1) #XRP가격 (1) #XRP업스윙 (1)

유용한 링크

유용하다고 생각되어 공유하고 싶은 링크.