Do Kwon is finally getting ready to pay the price. The co-founder of TerraForm Labs, who was in the news for his part in the failure of the Terra USD (UST) stablecoin, might be willing to admit guilt. The guy is thinking about changing his plea after years of denying it. Who could have seen that coming?
A filing in the U.S. District Court for the Southern District of New York on Monday showed that Judge Paul Engelmayer thinks Kwon might change his mind and plead guilty. He even told Kwon's lawyers to get ready for a narrative allocution, which means he will have to explain how he fits into all the fraud, money laundering, and market manipulation he is accused of. It sounds like a full confession is coming!
Kwon is in Big Trouble after the UST Collapse
Now, Kwon's lawyers didn't respond right away to requests for comment, which isn't surprising. Since Kwon pleaded not guilty in January, there has been no news. But it's almost a year later, and the guy might be changing his mind.
Don't forget that Kwon was charged with more than just a few small crimes. He is facing serious charges, including conspiracy to commit fraud, commodities fraud, wire fraud, securities fraud, and, of course, the big one: money laundering. These charges are based on his role in the failure of Terra USD (UST) in 2022, which caused billions of dollars in losses in the crypto world.
I think the failure of UST is a perfect example of what can go wrong with algorithmic stablecoins, which use market forces to keep their prices stable. To try to keep that stability, Terra USD was paired with Luna, a token for governance. We all know that it didn't go well.
So, what's next? Will Kwon's guilty plea help him get a shorter sentence, or will he be remembered as one of the biggest names in crypto fraud? I guess we'll have to wait for the conference on Tuesday.
Anastasiia G
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