Crypto Mogul Do Kwon Gets 15-Year Prison Sentence for $40 Billion Fraud Scheme
Do Kwon, the 34-year-old South Korean entrepreneur behind two cryptocurrencies that lost an estimated $40 billion three years ago and contributed to a sector-wide crash, has been sentenced to 15 years in prison for his role in a massive fraud scheme.
Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, pleaded guilty to two counts of US charges of conspiracy to defraud and wire fraud. He was sentenced at a hearing in New York, where Judge Paul Engelmayer called his crimes "a fraud of epic generational scale."
The judge's sentence was longer than what prosecutors had requested, citing the significant harm Kwon's actions caused to victims. The US government alleged that Kwon's fraudulent behavior contributed to the "crypto winter" of 2022 and the collapse of Sam Bankman-Fried's FTX.
Kwon maintained that his actions were not motivated by personal gain but rather a desire to prop up Terraform's stablecoin, TerraUSD. However, Judge Engelmayer rejected this argument as "wildly unreasonable." As part of his guilty plea, Kwon agreed to forfeit $19.3 million and some properties gained from the fraud.
Kwon's case is one of several cryptocurrency-related cases in the US, where executives are facing federal charges for their role in the collapse of companies like Terraform Labs and FTX. Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison last year.
The sentence has been met with relief from some victims, who had lost significant amounts of money in Kwon's cryptocurrency schemes. However, others expressed disappointment that they would not receive restitution for their losses. The judge noted that determining each victim's loss would be too complex and impractical.
Kwon's case highlights the risks and consequences associated with investing in cryptocurrencies and the importance of regulatory oversight to protect investors. His 15-year prison sentence serves as a warning to others who engage in similar fraudulent activities, emphasizing the need for accountability and justice in the crypto industry.
Do Kwon, the 34-year-old South Korean entrepreneur behind two cryptocurrencies that lost an estimated $40 billion three years ago and contributed to a sector-wide crash, has been sentenced to 15 years in prison for his role in a massive fraud scheme.
Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, pleaded guilty to two counts of US charges of conspiracy to defraud and wire fraud. He was sentenced at a hearing in New York, where Judge Paul Engelmayer called his crimes "a fraud of epic generational scale."
The judge's sentence was longer than what prosecutors had requested, citing the significant harm Kwon's actions caused to victims. The US government alleged that Kwon's fraudulent behavior contributed to the "crypto winter" of 2022 and the collapse of Sam Bankman-Fried's FTX.
Kwon maintained that his actions were not motivated by personal gain but rather a desire to prop up Terraform's stablecoin, TerraUSD. However, Judge Engelmayer rejected this argument as "wildly unreasonable." As part of his guilty plea, Kwon agreed to forfeit $19.3 million and some properties gained from the fraud.
Kwon's case is one of several cryptocurrency-related cases in the US, where executives are facing federal charges for their role in the collapse of companies like Terraform Labs and FTX. Bankman-Fried, the founder of FTX, was sentenced to 25 years in prison last year.
The sentence has been met with relief from some victims, who had lost significant amounts of money in Kwon's cryptocurrency schemes. However, others expressed disappointment that they would not receive restitution for their losses. The judge noted that determining each victim's loss would be too complex and impractical.
Kwon's case highlights the risks and consequences associated with investing in cryptocurrencies and the importance of regulatory oversight to protect investors. His 15-year prison sentence serves as a warning to others who engage in similar fraudulent activities, emphasizing the need for accountability and justice in the crypto industry.
this is like a huge weight has been lifted off people's shoulders I mean we all knew something was up with Terraform Labs but 15 years in prison is still crazy 
the fact that he got 5 yrs more than what prosecutors asked for is a win for justice 
and I'm glad some victims are relieved that they won't have to deal with him anymore 
can't wait to see more people held accountable for their actions in the crypto space 
. Kwon's excuse about wanting to prop up TerraUSD sounds sketchy to me, but I guess we'll never know for sure 
.
. And yeah, this case does highlight the risks of crypto investing and the need for better regulation 
. It's like, you can't just make up your own rules or game in a space where people are putting their lives savings on the line 
I mean, can you imagine being a deep-sea diver and then suddenly seeing this enormous creature staring back at you? 
it gives me the chills. anyway, back to crypto... 15 years is a pretty harsh sentence if you ask me... but I guess someone's gotta set an example for all those other crypto moguls out there 
can't believe do kwon got away with this for so long 
it's about time the authorities stepped in and brought some justice to all those victims who lost everything 
btw, 25 yrs is a harsh punishment on sf but i guess u can't have too much accountability in the crypto world 
$40 billion is like, totally insane! think about it 1% of that is $400 million lol anyway idk why ppl still invest in these schemes 
but its not about him its about all those victims 
and we need more regulation in the crypto space to protect investors 