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Former head of Terraform Labs, Do Kwon, has pleaded guilty to two fraud charges over a cryptocurrency crisis that cost investors more than $40 billion, according to the BBC. Kwon led Singapore-based Terraform Labs, whose TerraUSD and Luna cryptocurrencies collapsed in 2022, sparking a broader crypto market sell-off. U.S. prosecutors said Kwon misled investors by concealing that a trading firm propped up TerraUSD’s $1 peg, while he publicly claimed an algorithm maintained its value. The plea deal caps his prison exposure at 12 years, though the judge could impose up to 25 years, and requires forfeiting up to $19.3 million, properties, and paying restitution. Kwon fled South Korea in 2023, was arrested in Montenegro, and extradited to the U.S. He still faces charges in South Korea.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Former head of Terraform Labs, Duquan, has pleaded guilty to two fraud charges over a
00:06cryptocurrency crisis that cost investors more than $40 billion, according to the BBC.
00:11Duquan led Signifor-based Terraform Labs, whose TerraUSD and Luda cryptocurrencies collapsed in
00:162022, sparking a broader crypto market sell-off. U.S. prosecutors said Duquan misled investors
00:21by concealing that a trading firm prepped up TerraUSD's $1 pack, while he publicly claimed
00:27the algorithm maintained its value. The plea deal caps his prison exposure in 12 years,
00:31though the judge could impose up to 25 years. It requires forfeiting up to $19.3 million
00:36properties and paying restitution. Duquan fled South Korea in 2023, was arrested in Montenegro,
00:42and extradited to the U.S. He still faces charges in South Korea.
00:45For all things money, visit Benzinga.com.
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