Epic Fraud: Do Kwon Sentenced for Crypto Collapse

Do Kwon, co-founder of Terraform Labs, was sentenced to 15 years for defrauding investors of $40 billion with his cryptocurrencies TerraUSD and Luna. The massive fraud led to the collapse of several companies in 2022. Kwon faces additional charges in South Korea and agreed to a $4.55 billion settlement.

Do Kwon, the South Korean entrepreneur known for his crypto ventures TerraUSD and Luna, has been sentenced to 15 years in prison. The conviction comes after what U.S. District Judge Paul A. Engelmayer described as "an epic fraud." The court found Kwon guilty of misleading investors, causing a staggering $40 billion loss amid the 2022 crypto downturn.

During sentencing in Manhattan federal court, the judge reprimanded Kwon for betraying the trust of numerous everyday investors. Dressed in a prison uniform, Kwon apologized to those affected, acknowledging the profound impact and harm caused by his actions.

Prosecutors highlighted that Kwon's deception fueled a crisis, prompting a wave of corporate collapses. Despite a defense plea for a five-year sentence, given pending charges in South Korea, Kwon now faces years behind bars. His legal challenges continue, having previously agreed to pay civil fines and refrain from future cryptocurrency dealings.

(With inputs from agencies.)