All articles tagged with #terraform
Terraform co-founder Do Kwon pleaded guilty to conspiracy and wire fraud in connection with the $40 billion collapse of his cryptocurrency firm, Terra, after being extradited to the US. His plea was part of a deal that reduced charges, and his sentencing is scheduled for December 11th.
Do Kwon, a crypto magnate, has been found liable for multibillion-dollar fraud by a US court, with Terraform facing a financial penalty and potential exclusion from the US securities market. The case has sparked debate over the classification of crypto assets as securities, with implications for the wider crypto industry. The judge's ruling and the verdict in favor of the SEC set a precedent, potentially influencing future legal disputes in the crypto space. Terraform intends to appeal the verdict, citing ambiguity over the classification of its tokens, while the broader classification question may ultimately be settled through appellate courts or the US Supreme Court.
Do Kwon, the founder of Terraform Labs, has been granted bail of €400,000 ($435,000) by a Montenegrin court, but will be placed under police surveillance at a local residence. Kwon and another South Korean citizen are charged with attempting to use forged personal documents in Montenegro. Both have pleaded not guilty. Kwon is also wanted by authorities in Seoul and the US in connection with the $40bn crash of the Terraform ecosystem's cryptocurrency luna and stablecoin terrausd.
South Korean prosecutors investigating the collapse of Terraform Labs have found that the company transferred nearly $7 million to a law firm just before the crash of its cryptocurrencies. The transfers suggest that co-founder Do Kwon was aware of the imminent collapse. If the funds stem from criminal proceeds, they can be frozen and eventually seized. Do Kwon was arrested in March and is going to stand trial in Montenegro for traveling on false documents, before Podgorica considers his extradition to either South Korea or the United States, where he is charged with masterminding the crypto fraud.
Montenegro police have arrested a man believed to be Do Kwon, the fugitive crypto mogul wanted in connection with the collapse of his company Terraform, which cost investors over $40bn. Kwon has been charged by US officials for "orchestrating multibillion-dollar crypto asset securities fraud". His Singapore-based company Terraform collapsed in May 2022, triggering a sell-off in major cryptocurrencies. Kwon had denied being in hiding but never revealed his location. South Korea is seeking him, and Interpol issued an international red notice for his arrest in September.