South Korean Crypto CEO Admits Guilt in USD40B U.S. Fraud

(MENAFN) Do Hyeong Kwon, co-founder and CEO of Terraform Labs, admitted guilt on Tuesday to two fraud charges in the U.S. connected to the massive $40 billion crash of his cryptocurrencies.

The 33-year-old South Korean executive "used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history," said U.S. Attorney for the Southern District of New York Jay Clayton in an official statement.

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

Known by some as "the cryptocurrency king," Kwon is set to be sentenced on December 11 and faces a maximum sentence of 25 years behind bars.

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