🚨 UPDATE: Do Kwon has pleaded guilty in the U.S. to conspiracy to defraud and wire fraud over the $40 billion TerraUSD and Luna collapse, facing up to 25 years in prison. https://t.co/b3tXeekswQ ...

According to Reuters, Terraform Labs co-founder Do Kwon pleaded guilty in the U.S. on Tuesday to two federal charges: conspiracy to defraud and wire fraud. Kwon was behind the development of the cryptocurrencies TerraUSD and Luna, whose collapse led to an estimated $40 billion in losses. If convicted, he could face up to 25 years in prison.https://t.co/ApjoDsXqhA ...

Core Viewpoint - Do Kwon, the notorious former cryptocurrency mogul, pleaded guilty to two fraud charges in a New York federal court, marking a significant development in the aftermath of the collapse of the algorithmic stablecoin TerraUSD (UST) and its sister coin Luna, which resulted in a loss of over $40 billion in market value within a week in May 2022 [1][2][5]. Group 1: Collapse of TerraUSD and Luna - The algorithmic stablecoin TerraUSD was designed without backing from fiat currency or physical assets, relying instead on a dual-token system with Luna to maintain its price peg [2]. - The mechanism depended heavily on participant confidence, and once a significant funding gap occurred, the stablecoin's de-pegging became inevitable, leading to a "death spiral" as Luna's price plummeted [2][3]. - Within just five days, Luna's price fell from $80 to nearly worthless, and TerraUSD never regained its peg [3] Group 2: Impact on the Cryptocurrency Market - The collapse of TerraUSD and Luna ended the preceding cryptocurrency bull market, causing numerous crypto companies to go bankrupt, with Bitcoin's price dropping from $69,000 to $16,000 over the course of nearly a year [5]. Group 3: Legal Proceedings and Guilty Plea - After going into hiding following the collapse, Do Kwon was arrested in Montenegro in March 2023 while attempting to flee with a fake passport [7]. - His guilty plea signifies a decision to cease resistance against prosecutors, where he admitted to intentionally deceiving cryptocurrency buyers and acknowledged the fraudulent nature of his statements regarding TerraUSD's ability to self-recover [8]. - As part of a plea agreement, Do Kwon pleaded guilty to one count of conspiracy and one count of wire fraud, with prosecutors seeking a sentence of no more than 12 years, although he could face up to 25 years if the maximum sentence is imposed [8][9].

RT BSCN (@BSCNews)DO KWON EXPECTED TO PLEAD GUILTY IN $40B TERRAUSD COLLAPSE CASE- Terraform Labs co-founder Do Kwon is expected to plead guilty Tuesday in Manhattan federal court to U.S. fraud charges over the 2022 TerraUSD collapse that erased $40B in value, court records show.- According to Reuters, Judge Paul Engelmayer scheduled a change-of-plea hearing for 10:30 a.m. EDT and ordered Kwon to detail how he broke the law.- The 33-year-old had pleaded not guilty in January after a yearlong extradition bat ...

DO KWON EXPECTED TO PLEAD GUILTY IN $40B TERRAUSD COLLAPSE CASE- Terraform Labs co-founder Do Kwon is expected to plead guilty Tuesday in Manhattan federal court to U.S. fraud charges over the 2022 TerraUSD collapse that erased $40B in value, court records show.- According to Reuters, Judge Paul Engelmayer scheduled a change-of-plea hearing for 10:30 a.m. EDT and ordered Kwon to detail how he broke the law.- The 33-year-old had pleaded not guilty in January after a yearlong extradition battle between the U. ...

Group 1 - DJI officially announced the launch of its new robotic vacuum cleaner, the DJI ROMO series, scheduled for August 6, featuring a modern design and multiple versions including ROMO S, ROMO A, and ROMO P [1] - UBTECH launched the Walker S2, an industrial humanoid robot designed for smart manufacturing, featuring the BrainNet 2.0 and Co-Agent technology for autonomous operation and collaboration [5] - Elon Musk stated that Tesla aims to produce 1 million units of the Optimus 3 humanoid robot annually within five years, indicating confidence in the commercialization of humanoid robots [8] Group 2 - The S.1208 bill in Massachusetts aims to regulate the responsible use of advanced robotic technologies, making it illegal to modify or operate weaponized robots, with certain exceptions for defense and law enforcement [11] - TRIC Robotics raised $5.5 million in seed funding to develop autonomous robots for pest and disease control in specialty crops, starting with strawberries, using environmentally friendly methods [14]

Core Viewpoint - Alexander Mashinsky, former CEO of Celsius Network, was sentenced to 12 years in prison after pleading guilty to fraud, marking a significant downfall for a leader once celebrated in the crypto industry [1][5]. Group 1: Legal Proceedings and Sentencing - Mashinsky was sentenced by U.S. District Judge John G. Koeltl after pleading guilty to commodities fraud and manipulating the Celsius token [2]. - His legal troubles began in 2023 with his arrest on multiple fraud charges, coinciding with Celsius's $4.7 billion settlement with the Federal Trade Commission [3]. - The guilty plea and sentencing conclude a lengthy case involving charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission [5]. Group 2: Fraud Allegations - Prosecutors accused Mashinsky of misleading investors regarding the safety and profitability of Celsius's yield-generating platform while secretly liquidating tens of millions of dollars in personal assets [4]. - The fraud scheme orchestrated by Mashinsky and Celsius is described as multi-billion dollar, reflecting a broader trend of legal actions against prominent figures in the crypto sector [5]. Group 3: Industry Context - Mashinsky's downfall parallels that of other crypto executives like Sam Bankman-Fried, highlighting a pattern of significant legal repercussions within the cryptocurrency industry [5]. - The collapse of Celsius and other firms like Three Arrows Capital and Voyager Digital can be traced back to the broader impact of failed projects, such as Do Kwon's stablecoin, which wiped out approximately $40 billion from the market [16][19].

Financial Data and Key Metrics Changes - Total revenue for 2024 increased modestly to $119.8 million, with a 17% increase excluding ERTC revenues [10][11] - Recurring revenues grew by 15% year-over-year, now representing 96% of total revenues compared to 84% in 2023 [11][40] - Fourth quarter total revenues were $30.8 million, a 17% increase year-over-year, while recurring revenue rose by 14% [23][24] - Gross profit margin for the fourth quarter remained stable at 68%, while full-year gross margins decreased to 69% from 72% [26][27] - Net loss for the fourth quarter was $3.2 million, an improvement from $3.6 million in the prior year [27] Business Line Data and Key Metrics Changes - Payroll tax management product significantly contributed to revenue growth, alongside recent acquisitions [12][24] - Revenue growth was also noted in payroll, time and attendance, and benefits groups, with strong future potential in insurance offerings [25] - The 401(k) product saw an 86% increase in new bookings compared to the previous year, with a strong contracted backlog growing 17% since the last quarter [18][19] Market Data and Key Metrics Changes - The company anticipates a mid-teens growth rate for 2025, with revenue guidance set between $134 million and $138 million [19][34] - The contracted backlog reached $79 million, up from approximately $20 million at year-end 2023, with about a third expected to be recognized in 2025 [31] Company Strategy and Development Direction - The company is focused on enhancing client experience by integrating all solutions into a common user interface and launching innovative products like Luna, an AI agent for payroll and HR [16][38] - A multiyear agreement was signed with a leading firm in audit, tax, consulting, and advisory services to resell payroll and payroll tax management solutions [20] - The company aims to achieve 30% plus adjusted EBITDA margins as revenues approach $200 million, indicating a focus on scaling operations and improving profitability [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the hiring environment, noting a divide in layoffs between salary brackets and a continued demand for labor [73][74] - The company is optimistic about the growth of its tax business and the overall demand for its solutions, despite some challenges in HR compliance [81][82] - Management highlighted the importance of cross-selling and increasing attach rates to drive future revenue growth [39][122] Other Important Information - The company is in early discussions for a credit facility between $20 million to $60 million to support customer acquisition and potential M&A activities [30][62] - The company has made significant investments in expanding its product portfolio, which is expected to drive new client additions and enhance cross-selling opportunities [36][130] Q&A Session Summary Question: Progress on enterprise payroll tax opportunities and sales team productivity - Management reported good progress in enterprise tax sales and noted that the sales team is now fully productive post-ERTC transition [44][50] Question: Importance of closing the credit facility for M&A - The credit facility is crucial for funding upfront cash payments for customer acquisitions, which is a key part of the company's growth strategy [56][59] Question: Demand environment amid economic volatility - Management indicated that hiring continues on Main Street, with a cautious outlook in certain industries but overall positive employment trends [72][74] Question: Outlook for Q1 revenue breakdown - Management expects Q1 revenues to be flat compared to the previous year, with a conservative stance on professional services [85][90] Question: Details on SurePay rollout and 401(k) momentum - The SurePay product is in testing with 500 clients, and the 401(k) offering is gaining momentum as the sales team becomes more specialized [100][110] Question: New bookings growth drivers - The increase in new bookings is attributed to unit growth and the introduction of broader offerings, with a focus on improving ARPU through cross-selling [114][116]