Do Hyeong Kwon, the co-founder of blockchain and crypto company Terraform Labs, has pled guilty to fraud, admitting he engaged in criminal schemes that cost investors and users billions of dollars.
Kwon had marketed Terraform as a self-contained and decentralized financial ecosystem leveraging its own blockchain technology, the Department of Justice (DOJ) said in an Aug. 12 statement.
“In reality and unbeknownst to Terraform investors and users, the core suite of Terraform products did not work as advertised and had been manipulated to create the illusion of a functioning and decentralized financial system,” the department said.
U.S. Attorney Jay Clayton said in the statement, “Do Kwon used the technological promise and investment euphoria around cryptocurrency to commit one of the largest frauds in history.”…