DO KWON SENTENCED TO 15 YEARS IN PRISON – A MAJOR MILESTONE FOR EFFORTS TO CLEAN UP THE CRYPTO MARKET
The Federal Court in New York has sentenced Do Kwon, co-founder of Terraform Labs, to 15 years in prison for his role in the collapse of TerraUSD/LUNA, which caused an estimated loss of 50 billion USD in 2022. This sentence is higher than the prosecutor's recommendation of 12 years, indicating a tougher approach to financial fraud cases involving digital assets.
Kwon admitted to participating in and being aware of the fraudulent scheme involving TerraUSD (UST) – a promoted stablecoin that failed to maintain its peg mechanism. The collapse of Terra is considered the “first shot” that triggered the 2022 crisis, affecting many major organizations, including FTX.
Under the plea agreement, the number of charges was reduced from 9 to 2, and Kwon may be transferred back to South Korea after serving half of his sentence.
This ruling marks an important step in establishing legal standards for the crypto market, which is moving towards a more transparent and standardized structure.
