Terraform’s Do Kwon sentenced to 15 years for crypto fraud

Investing.com -- Do Kwon, the South Korean cryptocurrency entrepreneur behind Terraform Labs, was sentenced to 15 years in prison on Thursday for fraud and conspiracy related to the $40 billion collapse of his digital currencies in 2022.

The 34-year-old co-founder of Singapore-based Terraform Labs received the sentence from U.S. District Judge Paul A. Engelmayer at a hearing in Manhattan federal court. Kwon had previously pleaded guilty to misleading investors about TerraUSD, a coin that was marketed as maintaining a steady price during crypto market volatility.

Prosecutors had sought a minimum 12-year sentence, arguing that the crash of Kwon’s Terra cryptocurrency caused billions in losses and triggered a cascade of crises throughout the crypto market.

Kwon’s defense team had requested a maximum five-year sentence to allow him to return to South Korea, where he faces additional criminal charges.

The sentencing concludes U.S. efforts to prosecute Kwon following his extradition from Montenegro, where he was arrested for using a fake passport. The case was filed as US v. Kwon, 23-cr-0151, in the U.S. District Court, Southern District of New York.

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