Crypto Kingpin Do Kwon Faces U.S. Justice for $40 Billion Fraud

Do Kwon, the South Korean cryptocurrency entrepreneur, has pleaded guilty to U.S. charges of conspiracy to defraud and wire fraud, following the collapse of two digital currencies he developed. The plea marks a significant point in a case involving massive financial losses.

Kwon's admission comes after he was accused of misleading investors concerning the stability of TerraUSD, claiming that a computer algorithm maintained its value when in fact, a trading firm artificially supported it. His actions contributed to a $50 billion market surge before the crash.

With sentencing set for December 11, Kwon could face up to 25 years in prison, though a plea agreement may reduce the term to 12 years. The case is part of a larger crackdown on cryptocurrency fraud amid volatile market conditions.