NEW YORK — Cryptocurrency mogul Do Kwon has been sentenced to 15 years in prison following his conviction for defrauding investors amid the collapse of Terraform Labs’ crypto ecosystem in 2022. Kwon, recognized as the 'cryptocurrency king,' pled guilty to fraud charges, admitting to knowingly misleading investors about the safety and stability of his company’s TerraUSD, a so-called 'stablecoin'. The fallout resulted in an astonishing $40 billion loss, impacting countless individuals, charities, and families.
During the hearing, numerous victims recounted the devastating effects of their investments evaporating. One man stated he lost everything, leading to his divorce and forcing him to move back to his parents with financial strife. Another individual expressed deep remorse for persuading family and charities to invest, as those funds were significant for many causes. The prosecution highlighted that Kwon's fraudulent actions triggered a wider crisis throughout the cryptocurrency markets.
Sentencing guidelines suggested a longer term of approximately 25 years; however, prosecutors requested a sentence of 12 years, considering Kwon's cooperation and previous time served. Kwon has agreed to forfeit over $19 million, which was characterized as ill-gotten gains. The judge’s decision underscores the human toll of financial deception and the responsibilities held by those in power within the financial ecosystem.
During the hearing, numerous victims recounted the devastating effects of their investments evaporating. One man stated he lost everything, leading to his divorce and forcing him to move back to his parents with financial strife. Another individual expressed deep remorse for persuading family and charities to invest, as those funds were significant for many causes. The prosecution highlighted that Kwon's fraudulent actions triggered a wider crisis throughout the cryptocurrency markets.
Sentencing guidelines suggested a longer term of approximately 25 years; however, prosecutors requested a sentence of 12 years, considering Kwon's cooperation and previous time served. Kwon has agreed to forfeit over $19 million, which was characterized as ill-gotten gains. The judge’s decision underscores the human toll of financial deception and the responsibilities held by those in power within the financial ecosystem.
