Do kwon contemplates declaring himself guilty at the rate of what happened with Terraform Labs: Report

The co -founder of TERRAFORM LABS It could be convicted after years of facing charges in the US, as indicated by reports linked to the case.

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• Do Kwon would consider changing his statement to guilty for multiple positions in New York.
• The case is related to the collapse of the stablecoin Terrausd (UST) in 2022.
• The hearing to discuss the change of declaration will be this Tuesday.

The co -founder of Terraform Labs, Do Kwon, could declare himself guilty in the United States, years after being accused of fraud and money laundering by federal prosecutors, reports reveal. The possibility arises within the framework of a case that involves one of the most popular falls in the history of cryptocurrencies: the collapse of the stablecoin issued by the organization (UST) and his associated token (MOON).

According to a court order filed on Monday by Judge Paul Engelmayer, of the Court of the South District of New York, The court was informed that Kwon could “Change your guilt statement”. The document indicates that the defendant must be prepared to offer a detailed story that includes all the elements of the crimes to which he will declare himself guilty. The audience to discuss the matter will be held this Tuesday morning.

Context of the case and accusations

Kwon was formally accused in March 2023 of multiple positions, including conspiracy to defraud, merchandise fraud, electronic fraud, securities fraud, market manipulation and conspiracy for money laundering. The accusations focus on their role in the functioning of the algorithmic stablecoin Ust, whose design depended on market incentives and algorithms to maintain stable value.

The system linked Ust With the governance token MOON. However, in May 2022, the bonding broke and the price of the stablecoin lost its parity with the dollar, triggering a collapse that eliminated tens of billions of dollars from the crypto market.

This collapse affected not only retail investors, but also companies and investment funds with significant positions in the ecosystem Terra The magnitude of the losses caused a series of investigations and demands in several jurisdictions.

The impact of Terra In the crypto ecosystem

The collapse of Ust and MOON It marked a before and after for the Stablcoins sector. Until then, the idea of a digital asset that maintained its value without support of physical or fiduciary reserves generated enthusiasm in part of the community. However, the case Terra evidenced the structural risks of this model.

Regulators and legislators from all over the world intensified the scrutiny about stablecoins, particularly those that are not backed by tangible assets. In the United States, Kwon’s case has been summoned as an example in audiences and debates about the need for a stricter supervision of stable currencies.

Next judicial steps

If a change of statement is confirmed, Kwon would go from disputing the positions to admit responsibility in at least some of them. This turn could accelerate the judicial process and, potentially, lead to an agreement with the Prosecutor’s Office.

However, the scope of any agreement and the possible condemnation will depend on factors such as the degree of cooperation with the authorities and the nature of the positions you decide to accept.

Meanwhile, the crypto community will closely follow the hearing on Tuesday, which could seal one of the most important chapters in the judicial history of the sector.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image, created with artificial intelligence, for free use, licensed under public domain

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