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Crypto Magnate Do Kwon Found Liable for Multi-Billion-Dollar Fraud

Wired · 1y ago

Crypto Magnate Do Kwon Found Liable for Multi-Billion-Dollar Fraud

South Korean crypto magnate Do Kwon and his company Terraform Labs have been found liable for defrauding investors who lost billions of dollars in cryptocurrency investments. The civil complaint, filed by the Securities and Exchange Commission, alleged that Kwon and Terraform lied to investors about the prospects and stability of the cryptoassets they issued. Kwon is also facing criminal charges in the US and South Korea. The resolution of this case and other similar cases will have an impact on the regulation and classification of cryptocurrencies in the US.

Related News

Terraform Labs co-founder Do Kwon will face fraud charges in the US | TechCrunch

TechCrunch · 8m ago

Terraform Labs co-founder Do Kwon will face fraud charges in the US | TechCrunch

Terraform Labs' co-founder Do Kwon will be extradited to the U.S. from Montenegro to face fraud charges. Kwon and Terraform Labs were found liable for fraud after the collapse of their cryptocurrencies, TerraUSD and Luna, leading to significant investor losses. Terraform agreed to a $4.5 billion settlement with the U.S. SEC. Kwon was arrested in Montenegro while attempting to travel to Dubai. It's uncertain when he will be extradited.

FTX Founder Sam Bankman-Fried Has Been Found Guilty of Fraud

Wired · 1y ago

FTX Founder Sam Bankman-Fried Has Been Found Guilty of Fraud

Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX, has been found guilty of fraud by a jury in New York. He was convicted on all seven counts, including overseeing a multi-billion-dollar fraud whereby money from FTX customers was used for high-risk trades, debt repayments, personal loans, and political donations. The US Department of Justice views this conviction as a significant victory and a message to the crypto industry that fraud will not be tolerated. Bankman-Fried awaits sentencing and will face a second trial on additional charges in 2024.

The other crypto bosses in US authorities' crosshairs

Economic Times

Economic Times · 1y ago

The other crypto bosses in US authorities' crosshairs

Several crypto industry moguls who are currently under investigation by US authorities. Sam Bankman-Fried, the founder of FTX crypto exchange, was recently found guilty of defrauding customers. Binance and its CEO, Changpeng Zhao, are facing lawsuits by the SEC and the CFTC for alleged deception and operating an illegal exchange. Do Kwon, co-founder of Terraform Labs, is charged with fraud and was arrested for forging documents. Celsius Network's founder, Alex Mashinsky, has pleaded not guilty to fraud charges. Barry Silbert of Digital Currency Group and Stephen Ehrlich of Voyager Digital are also facing legal action. Finally, Chinese entrepreneur Justin Sun and his companies, including Tron Foundation, were charged with fraud by the SEC.

Terraform Labs founder Do Kwon pleads guilty to US fraud charges in $40 billion crypto collapse - The Economic Times

Economic Times

Economic Times · 15d ago

Terraform Labs founder Do Kwon pleads guilty to US fraud charges in $40 billion crypto collapse - The Economic Times

Do Kwon, the founder of Terraform Labs, pleaded guilty to U.S. charges of conspiracy to defraud and wire fraud related to the collapse of TerraUSD and Luna currencies, which lost $40 billion in value. Initially pleading not guilty to nine counts, including securities fraud and money laundering, Kwon admitted to misleading investors about TerraUSD's value restoration. He faces up to 25 years in prison, with a likely sentence of no more than 12 years.

Terraform Labs files for bankruptcy protection in US

Economic Times

Economic Times · 1y ago

Terraform Labs files for bankruptcy protection in US

Terraform Labs, the firm behind the troubled stablecoin TerraUSD, has filed for Chapter 11 bankruptcy in the U.S., citing assets and liabilities in the range of $100-$500 million. The move comes amid a postponed SEC trial over an alleged $40 billion cryptocurrency fraud involving TerraUSD's collapse in 2022. Terraform Labs and co-founder Do Kwon face responsibility for the turmoil in crypto markets caused by the collapse of TerraUSD and its associated token, Luna. Both cryptocurrencies lost an estimated $40 billion when TerraUSD failed to maintain its $1 peg in May 2022.

Judge sides with US SEC, says Terraform Labs crypto founder Do Kwon violated law

Economic Times

Economic Times · 1y ago

Judge sides with US SEC, says Terraform Labs crypto founder Do Kwon violated law

A federal judge has ruled that Do Kwon and his company, Terraform Labs, violated US law by failing to register two collapsed digital currencies. The judge supported the Securities and Exchange Commission's case against the implosion of the TerraUSD and Luna currencies. Both sides were denied summary judgment on fraud claims, and the case is scheduled for trial in January 2024. Kwon, who has been charged with fraud, is currently fighting extradition to the US. The collapse of the cryptocurrencies resulted in an estimated loss of $40 billion and affected the value of other cryptocurrencies.

Crypto mogul Do Kwon pleads not guilty in first US court appearance

Economic Times

Economic Times · 7m ago

Crypto mogul Do Kwon pleads not guilty in first US court appearance

South Korean cryptocurrency mogul Do Hyeong Kwon pleaded not guilty to charges in a US court after being extradited from Montenegro. The charges involve conspiracy and fraud related to deceiving investors into investing in Terraform Labs, which he co-founded. Despite claims of offering reliable financial technologies, authorities allege a $40 billion crash of the company's cryptocurrency harmed investors worldwide. Kwon's plea addresses multiple fraud charges, including commodities and securities fraud, with a money laundering charge added.

Sam Bankman-Fried gets 25 years in prison for fraud and money-laundering at FTX

TechCrunch · 1y ago

Sam Bankman-Fried gets 25 years in prison for fraud and money-laundering at FTX

Former FTX CEO, Sam Bankman-Fried, has been sentenced to 25 years in prison after being found guilty on all seven counts of fraud and money laundering. Prosecutors had called for a 40 to 50-year sentence, citing the scale of the fraud, which involved at least $10 billion in losses. Bankman-Fried's collapse in November 2022 led to the downfall of FTX, once one of the biggest crypto exchanges. The sentencing could send a message to the crypto industry, with the court considering the need for adequate deterrence. Bankman-Fried will not be eligible for parole, but may receive a reduction in his sentence for good behavior.

Gautam Adani ‘bribery’ case: How the troubles began since Hindenburg allegations — a timeline | Company Business News

Livemint

Livemint · 9m ago

Gautam Adani ‘bribery’ case: How the troubles began since Hindenburg allegations — a timeline | Company Business News

The Securities and Exchange Commission (SEC) has charged Adani Group Chairman Gautam Adani and his nephew Sagar Adani, among others, with involvement in a multi-billion-dollar bribery and fraud scheme. The SEC alleges that Adani Green Energy and Azure Power raised funds from US investors, promising bribes to Indian government officials to secure solar energy contracts. This comes after a report by US-based short seller Hindenburg Research alleged stock manipulation and accounting fraud by the Adani Group, leading to significant market value losses. Adani Enterprises also saw a drop in share price and Gautam Adani's net worth.

Fraud victims among top crypto ATM users, Australian regulator says

Economic Times

Economic Times · 2m ago

Fraud victims among top crypto ATM users, Australian regulator says

Australia's financial crimes agency, AUSTRAC, has identified 90 scam victims and potential criminals as major users of crypto ATMs, linking many transactions to fraud. A national operation found many transactions involved victims, not perpetrators. An elderly woman lost over A$430,000 to scams. AUSTRAC recently imposed conditions on crypto ATM providers over compliance issues. The number of machines exceeds 1,800 amid increased regulation on crypto exchanges, including scrutiny of Binance and Blockchain Global.

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