Epic Fraud: Crypto Mogul Do Kwon Sentenced to 15 Years

Do Kwon, a leading figure in cryptocurrency, has been sentenced to 15 years in prison for orchestrating a massive fraud involving Terraform Labs' TerraUSD and Luna currencies. The collapse led to losses estimated at $40 billion. Kwon expressed remorse and has agreed to pay a civil fine and be banned from crypto transactions.

Do Kwon, the South Korean crypto entrepreneur responsible for two digital currencies that led to a staggering $40 billion loss in 2022, was sentenced to 15 years in prison. U.S. District Judge Paul A. Engelmayer denounced Kwon for deceiving investors who invested their life savings in his projects.

The judge described Kwon's actions as an 'epic, generational fraud.' Kwon, co-founder of Terraform Labs, admitted in court to misleading investors about TerraUSD, meant to remain stable amid market volatility. The 34-year-old expressed deep remorse, highlighting the massive financial impact on victims.

Facing numerous fraud charges, Kwon was also implicated in an intricate scheme to inflate cryptocurrency values. His lawyer noted Kwon's genuine regret and efforts to make amends. Despite requesting a shorter sentence, prosecutors emphasized the far-reaching negative effects on the crypto market.

(With inputs from agencies.)