The long -term legal epic from the founder of Terraform Labs, Do Kwon, was the man who was once promoted a “genius of encryption”, and was later distorted as an engineer with one of the largest financial disasters in this field, may finally approach the end game.
Tomorrow, a US federal court in New York will determine whether KWON will change its approval on charges of fraud and manipulating the market associated with the collapse of Terrausd (UST) and color.
If confirmed, this would represent a dramatic reflection on the previous KWON position, and can be closed in one of the most important criminal condemnation in the history of encryption after years of drama.
How Kwon move from Crypto Prodigy to Global Fugity
Have Hayung “Do” Coone has emerged as attractive voices for the tired Terrausd (UST) algorithms as a future for decentralized financing.
The UST connection to the US dollar has been preserved through an intertwined relationship with the Luna Governance code, which is the Coone mechanism that promotes elegant and safe.
For some time, the market agreed. At its peak in early 2022, the Terra’s ecological system included the market value of more than $ 50 billion, with KWON as one of the most influential numbers in Web3.
But behind the general noise, American prosecutors claim that Coone has organized a complex network of deception, including the adoption of the fake real world, the activity of the processed market, and the hidden control of the supposed decentralized protocols.
When the UST connection stumbled in May 2022, the project entered the spiral of death.
The price of Luna collapsed to nearly zero, as life savings spent the retailers and billions of institutional portfolios.
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The US Department of Justice now claims that Coone’s response to the crisis was not acknowledging the failure, but to double the deception: arranging the secret market interventions to temporarily support UST, publish misleading audit reports, and claims washing hundreds of millions through coincidence and Swiss bank accounts.
By the time the dust settled, the market value was evaded at a value of $ 40 billion.
The repercussions erupted beyond the direct investors in Terra, which led to a broader panic in the encryption sector and feeding a organizational campaign that still constitutes a cautious encryption policy in environments such as the United Kingdom today.
You can run, but you cannot hide:
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After the collapse, Cuone left South Korea and began Odysse for months to escape the implementation of international law.
His journey ended in March 2023, when he was arrested in Bodgorica, Montenegro, in an attempt to travel with Costa Rican’s fraudulent passport.
Even in the reservation, Cuone’s legal fate has been stabbed. South Korea and the United States fought for delivery, as it wore the case between the Montecine’s courts for more than a year before Washington prevailed.
KWON was officially delivered to the FBI in December 2024. He faces nine criminal charges, including wire fraud, securities fraud, goods fraud, market manipulation, and money laundering.
If he is convicted of all charges, it faces the 130 -year theoretical limit in prison – a life prison sentence.
Will Tuesday bring a possible call deal?
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Now, less than a year after his delivery, Judge Paul Engelyer from the American Provincial Court in the Southern Province in New York ordered a conference where he may enter.
The judge issued instructions to the defense lawyer to prepare a full account customization, and this means detailed recognition during the record covering all the elements of the crimes he calls.
It can save the deal of acknowledgment of a long and unpredictable trial, but it will also require it to recognize one of the most prominent fraud cases on the date of financing.
Details, including whether the agreement involves cooperation with public prosecutors or the scope of the recommended judgments, is sealed.
If Kwon admits guilty, it may indicate a turning point in how the American authorities sued the executives of encryption accused of fraud on a large scale.
With Sam Bankan Farid who already serves the time for FTX collapse, two of the most notorious names in Crypto can participate the same legal fate.
Whether hearing tomorrow represents the conclusion of the Coone epic or just another development in a year that lasted, there will be one clear thing: the man who once sold the world to see decentralized funds now fights for his freedom in the same courts that he rejected one day as not related to encryption. Stay followers.
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Last Do Kwon appeared: The most expensive Endgame of Crypto appeared in Crypto first on 99bitcoins.