Do Kwon Pleads Guilty: Prosecutors Recommend a Sentence of Up to 12 Years in Prison, Sentencing by the Chief Judge Scheduled for December 11

BlockBeats News, August 13th, according to Reuters, South Korean cryptocurrency entrepreneur Do Kwon admitted on Tuesday in a New York federal court to two counts of fraud. The 33-year-old co-founder of Terraform Labs, developer of the TerraUSD and LUNA tokens, experienced a collapse in 2022, resulting in approximately $40 billion in losses.

During a hearing presided over by Judge Paul Engelmayer in the Southern District of New York, Do Kwon pleaded guilty to charges of conspiracy to commit fraud and telecommunication fraud. In January of this year, he had refused to plead guilty to a nine-count indictment, including securities fraud, wire fraud, commodities fraud, and money laundering.

At the trial, Do Kwon apologized in court, saying, "I concealed the truth of the trading firm's intervention in the recovery of the peg, making false statements. My actions were wrong."

Although the statutory maximum sentence is 25 years, the prosecution has agreed to recommend a term of imprisonment not exceeding 12 years if he pleads guilty and shows remorse. The presiding judge is set to deliver the sentencing judgment on December 11th. This case is one of the key cases during the 2022 cryptocurrency winter, during which several digital asset companies went bankrupt.