The co -founder of the South Korean company Terraform Labs to Kwon, a person involved in the US criminal case in fraud for $ 40 billion, may admit his guilt, Bloomberg reported.

The Southern District of New York, Paul Engelmayer, appointed Paul Engelmayer on Tuesday, August 12, a request for a petition to Kwon. The judge said that Kwon should be ready to explain, “how he violated the law if he pleaded guilty.”

The US authorities accuse the Korean entrepreneur of organizing in 2018 – 2022 “Terraform fraudulent scheme.” Due to the collapse of Terrausd stablecoin in May 2022, investors in the United States and other countries incurred losses worth more than $ 40 billion.

In addition, Cvon was charged with fraud with goods and securities using electronic communications, as well as conspiracy to launder money.

An entrepreneur who does not plead guilty was hiding for a long time from justice, until in March 2023 he was detained at the airport of Podgorica, the capital of Montenegro. The businessman was arrested with a fake passport while trying to fly to Dubai. At the end of 2024, Kwon was extradited in the United States, and not to South Korea, where he was brought in similar accusations, writes Bloomberg.

In the same 2024, the US Securities and Exchange Commission (SEC) won a civil lawsuit against Kwon and TerRaform. The jury considered proven that the company and its leader deliberately misled the investors. As part of the settlement of the dispute, the entrepreneur and the company agreed to pay $ 4.47 billion.

After the court, the company said that it stops the market and directed the remaining funds to repay debts to creditors. According to the US Department of Justice, if Kvon is found guilty, he may face up to 130 years in prison.

Earlier, Mooam Productions said that the film “Cryptomen”, telling the story of the creation and collapse of Terraform Labs, as well as the Terra-Luna asset, which customers lost a total of $ 40 billion to $ 60 billion.