The so-called "Cryptocrash King" was behind the spectacular collapse of the TerraUSD and Luna cyber that caused over $40 billion in losses to investors in the U.S. and around the world.
As part of a plea bargaining deal, the former entrepreneur of Singapore-based Terraform Labs, who faced up to 25 years in prison, admitted to charges of conspiracy to defraud and wire fraud, with prosecutors agreeing not to seek a sentence longer than 12 years while confiscating around US$26.5 billion and other assets.
In addition, if Kwon serves half of his sentence and abides by his plea-bargaining agreements, U.S. authorities have also agreed to accept his possible request for their international prisoner transfer program, allowing him to serve the remainder of his prison term in South Korea.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon apologized for his conduct in court. "What I did was wrong."
Kwon had claimed his innocence since being extradited from Montenegro in January, where he was arrested in March 2023 while attempting to board a flight using several forged passports.
He initially pleaded not guilty to all charges during his arraignment.
The TerraUSD collapse sent shockwaves through the cryptocurrency industry, as the stablecoin was designed to maintain a $1 peg through an algorithmic system. Prosecutors alleged that trading firms artificially propped up the token's price, contradicting Terraform Labs' public claims that its autonomous mechanism, known as the "Terra Protocol" restored the coin's value.
Kwon's sentencing, which will determine his final prison term, is scheduled for Dec. 11.
If he eventually manages to return to Seoul, there remains a chance that he could face separate charges here.
reporter
Kim Dong-young
davekim0807@ajupress.com
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