Terraform Labs co-founder Do Kwon has pleaded guilty to conspiracy and wire fraud three years after his collapsed cryptocurrency firm wiped out $40 billion in funds, according to a report from Bloomberg. Kwon entered his plea in a New York court on Tuesday as part of a deal reached with prosecutors that reduced his charges.
Inner City Press, which reports on courtroom proceedings, said Kwon admitted to knowingly defrauding cryptocurrency customers and working with another company to artificially inflate Terra’s $1 peg. Kwon’s sentencing is set for December 11th, with the conspiracy charge holding a maximum sentence of five years, and wire fraud at a maximum of 20 years, according to Bloomberg.
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