United States v. Do Kwon (Terra/Luna) (2024)

Analysis ID: e1h6i58-kfg7-gf6f-3g4492i969k3

Predicted Outcome

Guilty Plea Accepted

Confidence Score: 99%

Analysis Type

Criminal Case

Jurisdiction:Federal

Citations:6

Probability Distribution

Guilty Plea Accepted99%

Plea Withdrawn1%

Defendant pleaded guilty, eliminating need for trial and establishing guilt as a matter of record.

Plea agreement includes admission to operating fraudulent algorithmic stablecoin scheme.

Evidence shows defendant made false representations about Terra/Luna stability mechanisms.

Blockchain analysis demonstrates artificial price manipulation and market manipulation.

$40 billion in investor losses resulting from collapse establishes magnitude of harm.

International flight and evasion of authorities demonstrates consciousness of guilt.

Cooperation agreement may provide evidence against other co-conspirators.

Statute

Scheme to defraud using wire communications.

Statute

Fraud in connection with securities transactions.

Statute

Conducting financial transactions to conceal proceeds of unlawful activity.

Case Law

Precedent for sentencing in large-scale financial fraud cases.

•Defense may argue for leniency based on cooperation with authorities.
•Defense could claim lack of intent to defraud, asserting algorithm failure was unforeseeable.
•Defense may argue other factors (market conditions, competitor actions) caused collapse.
•Defense could seek reduced sentence based on acceptance of responsibility.

1.Plea agreement could be withdrawn if defendant fails to fulfill cooperation obligations.
2.Court could reject plea deal if sentencing recommendation deemed too lenient.
3.Additional charges could be filed if new evidence of criminal conduct emerges.
4.Extraordinary cooperation leading to prosecution of higher-level conspirators might reduce sentence.