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Do Kwon Pleads Guilty to US Fraud Charges In $40 Billion Crypto Collapse

4 months 1 week ago
Terraform Labs founder Do Kwon pleaded guilty in U.S. federal court to conspiracy to defraud and wire fraud over the $40 billion collapse of TerraUSD and Luna in 2022. Reuters reports: Kwon, 33, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, entered the plea at a court hearing in New York before U.S. District Judge Paul Engelmayer. He had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy. Accused of misleading investors in 2021 about TerraUSD - a so-called stablecoin designed to maintain a value of $1 - Kwon pleaded guilty to the two counts under an agreement with the Manhattan U.S. Attorney's office, which brought the charges. He faces up to 25 years in prison when Engelmayer sentences him on December 11, though prosecutor Kimberly Ravener said the government had agreed to advocate for a prison term of no more than 12 years provided he accepts responsibility for his crimes. "I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."

Read more of this story at Slashdot.

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Russia Is Suspected To Be Behind Breach of Federal Court Filing System

4 months 1 week ago
ole_timer shares a report from the New York Times: Investigators have uncovered evidence that Russia is at least partly responsible for a recent hack of the computer system that manages federal court documents, including highly sensitive records with information that could reveal sources and people charged with national security crimes, according to several people briefed on the breach. It is not clear what entity is responsible, whether an arm of Russian intelligence might be behind the intrusion or if other countries were also involved, which some of the people familiar with the matter described as a yearslong effort to infiltrate the system. Some of the searches included midlevel criminal cases in the New York City area and several other jurisdictions, with some cases involving people with Russian and Eastern European surnames. Administrators with the court system recently informed Justice Department officials, clerks and chief judges in federal courts that "persistent and sophisticated cyber threat actors have recently compromised sealed records," according to an internal department memo reviewed by The New York Times. The administrators also advised those officials to quickly remove the most sensitive documents from the system. "This remains an URGENT MATTER that requires immediate action," officials wrote, referring to guidance that the Justice Department had issued in early 2021 after the system was first infiltrated. Documents related to criminal activity with an overseas tie, across at least eight district courts, were initially believed to have been targeted. Last month, the chief judges of district courts across the country were quietly warned to move those kinds of cases off the regular document-management system, according to officials briefed on the request. They were initially told not to discuss the matter with other judges in their districts.

Read more of this story at Slashdot.

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