A former leader in the South Korean Blockchain industry made a shocking move recently within the U.S. judicial system. The co-founder of Terraform Labs pleaded guilty to a series of serious charges in a federal court in Manhattan, New York. These charges are related to the TerraUSD and Luna collapse incident in 2022, which caused approximately $40 billion in market capitalization to evaporate.

According to information disclosed by the court, the former Blockchain star faces multiple charges including securities fraud and telecommunications fraud. In the plea agreement reached, he could face up to 12 years of imprisonment. Additionally, the judicial department is seeking the forfeiture of his assets exceeding 19 million USD and permanently depriving him of all rights related to Terraform Labs and associated Crypto Assets.

This guilty plea undoubtedly has far-reaching implications for the entire Crypto Assets industry and provides important guidance for regulators on how to handle similar cases. Industry insiders generally believe that this may prompt more countries to accelerate the formulation of relevant regulations to better regulate the rapidly developing Blockchain and Crypto Assets market.

The court has scheduled a sentencing hearing for December 11 of this year. At that time, we will gain further insight into what specific punishment this former star of the Blockchain world will face. The final verdict of this case could have a significant impact on the future direction of the global Crypto Assets industry.