Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
US prosecutors estimate over 1 million victims in Do Kwon’s criminal case

US prosecutors estimate over 1 million victims in Do Kwon’s criminal case

The BlockThe Block2025/01/05 16:00
By:The Block

Quick Take U.S. prosecutors said the number of victims of Do Kwon’s alleged crypto fraud scheme potentially surpasses one million. Kwon, recently extradited to the U.S. from Montenegro, has pleaded not guilty to criminal charges.

US prosecutors estimate over 1 million victims in Do Kwon’s criminal case image 0

U.S. prosecutors, who have filed criminal charges against former Terraform Labs CEO Do Kwon , estimate that the collapse of TerraUSD and Luna cryptocurrency potentially affected more than one million victims.

“While it is difficult to precisely quantify the number of Kwon’s victims … the Government estimates that the number of victims in this case exceeds hundreds of thousands of individuals and entities, and potentially totals more than one million,” Acting US Attorney Daniel Gitner wrote in a court filing submitted on Monday.

In the alleged crypto fraud scheme, prosecutors claimed that Kwon built the Terra ecosystem on “lies” and “manipulative and deceptive” techniques to deceive investors into believing it was a functioning and reliable financial system. 

“Ultimately, investors suffered over $40 billion in losses as a result of Kwon’s fraud,” the filing said.

Due to the number of potential victims, U.S. prosecutors said it is “impracticable” to send individualized notice to each victim informing them of their rights. Instead, prosecutors have requested the court to post a public notice of the proceedings online.

Kwon faces multiple criminal charges in the U.S., the destination of his extradition from Montenegro last week. His charges include commodities fraud, securities fraud, wire fraud, money laundering conspiracy, among others. If convicted of all charges, Kwon could face a maximum penalty of 130 years in prison.

In a New York court last week, Kwon pleaded not guilty to his criminal charges. His next court appearance is set for Jan. 8, according to Reuters.


0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Bitcoin Gains as Ethereum ETFs Lose $760M: What’s Causing the Investor Alarm?

Exploring the Shift in Investor Sentiment and Strategies Amid Surging Bitcoin Popularity and Ethereum ETFs Divestment

Coineagle2025/03/24 11:11
Bitcoin Gains as Ethereum ETFs Lose $760M: What’s Causing the Investor Alarm?

RSI breaks 4-month downtrend: 5 Things to know in Bitcoin this week

Bitcoin is attempting to bring the bull market back in full force, but market participants are wary, and even see a return to $76,000 after new all-time highs.

Cointelegraph2025/03/24 09:16
RSI breaks 4-month downtrend: 5 Things to know in Bitcoin this week