Cryptocrash king' Do Kwon pleads guilty to fraud

Cryptocurrency mogul Do Kwon, CEO of Terraform Labs, has pleaded guilty to charges of fraud and misappropriation of funds following the catastrophic collapse of the TerraUSD stablecoin last year.

The once-powerful 'cryptocrash king' has reportedly admitted to orchestrating a complex scam to defraud investors

The charges, which were filed in South Korea and first reported by Bloomberg, could see Kwon sentenced to up to five years in prison and a hefty fine if convicted. He is reportedly seeking a plea deal.

Kwon had previously maintained his innocence, claiming that the collapse of TerraUSD - which saw billions of dollars wiped out and shook the entire crypto market - was due to external market forces and not his own actions.

The fallout from the collapse

The guilty plea is a significant development in a high-profile case that has gripped the cryptocurrency world and could have wide-reaching implications for the future of the industry.

Despite the collapse of TerraUSD and the subsequent wipeout of its sister token Luna, Terraform Labs continues to operate and develop new projects.