Do Kwon, former cryptocurrency magnate, was sentenced to 15 years in prison for massive fraud.

Do Kwon, former cryptocurrency magnate, was sentenced to 15 years in prison for massive fraud (Photo AP/Risto Bozovic, Archive)

The South Korean tech entrepreneur Do Kwon, known for developing the cryptocurrencies TerraUSD and Luna, was convicted this Thursday in New York City to 15 years in prison for a fraud case that American authorities described as one of the largest in the history of the financial sector.

A federal judge imposed the sentence after Kwon, co-founder of Terraform Labs, acknowledged that he lied to thousands of investors about the safety and stability of his digital products, which collapsed in 2022 and generated a domino effect in the global cryptoasset market.

The hearing took place in the federal court in Manhattan, where Judge Paul A. Engelmayer declared that the impact of the fraud executed by Kwon reaches an “epic and generational” scale.

In the history of federal prosecutions, there are few frauds that have caused as much damage as yours, Mr. Kwon, Engelmayer asserted while delivering the sentence.

Do Kwon, 34 years old and dressed in a yellow prison uniform, addressed the court to apologize to those affected.

Do Kwon, South Korean cryptocurrency executive accused of fraud, appears alongside his lawyer David Patton to plead guilty before federal district judge Paul Engelmayer in New York City (REUTERS/Jane Rosenberg)

All of your stories were terrifying and reminded me of the enormous damage I caused. I want to tell these victims that I am very sorry, expressed the former director of Terraform Labs, referring to the hundreds of affected individuals who sent letters to the court narrating the loss of their savings after the collapse of the coins.

The prosecution noted that the debacle of TerraUSD and Luna, self-proclaimed as stable, within the volatile digital market, dragged down several investment funds and small savers.$ETH $XRP $BNB