Do Kwon, co-founder of Terraform Labs, has been sentenced to 15 years in prison for his role in the historic collapse of Terra, which erased around $50 billion from the crypto market in just three days in May 2022.
Judge Paul Engelmeyer of the Southern District of New York delivered the sentence, surpassing the 12-year term prosecutors requested and far exceeding the five years proposed by Kwon’s defense team.
During the hearing, multiple victims described severe financial and emotional harm caused by the collapse. The judge highlighted the “eye-popping” scale of the fraud and the enormous number of affected investors. He also emphasized Kwon’s attempt to evade authorities by fleeing to Serbia and Montenegro using fake passports.
Engelmeyer called Kwon’s behavior during UST’s final de-peg “despicable,” noting that he encouraged retail investors to stay invested while insiders quietly exited their positions. Kwon’s past online comments, including insults toward critics, were also cited as evidence of reckless disregard.
He must serve at least half his sentence before seeking transfer to South Korea.
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