Criptonoticia11
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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 to 15 years in prison for a fraud case that U.S. 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 the firm Terraform Labs, admitted that he lied to thousands of investors about the safety and stability of his digital products, which collapsed in 2022 and created a domino effect in the global cryptocurrency market.
The hearing took place in the federal court of Manhattan, where Judge Paul A. Engelmayer stated that the impact of the fraud committed by Kwon reaches an “epic and generational” scale.
In the history of federal prosecutors, there are few frauds that have caused as much damage as yours, Mr. Kwon, Engelmayer said at the time of sentencing.
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 attorney David Patton to plead guilty before federal district judge Paul Engelmayer in New York City (REUTERS/Jane Rosenberg)
All of their stories were chilling and reminded me of the enormous damage I have caused. I want to tell those victims that I am sorry, said the former director of Terraform Labs, referring to the hundreds of victims who submitted letters to the court narrating the loss of their savings after the collapse of the coins.
The prosecution specified that the debacle of TerraUSD and Luna, self-proclaimed as stable, within the volatile digital market, dragged down several investment funds and small savers.
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 to 15 years in prison for a fraud case that U.S. 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 the firm Terraform Labs, admitted that he lied to thousands of investors about the safety and stability of his digital products, which collapsed in 2022 and created a domino effect in the global cryptocurrency market.
The hearing took place in the federal court of Manhattan, where Judge Paul A. Engelmayer stated that the impact of the fraud committed by Kwon reaches an “epic and generational” scale.
In the history of federal prosecutors, there are few frauds that have caused as much damage as yours, Mr. Kwon, Engelmayer said at the time of sentencing.
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 attorney David Patton to plead guilty before federal district judge Paul Engelmayer in New York City (REUTERS/Jane Rosenberg)
All of their stories were chilling and reminded me of the enormous damage I have caused. I want to tell those victims that I am sorry, said the former director of Terraform Labs, referring to the hundreds of victims who submitted letters to the court narrating the loss of their savings after the collapse of the coins.
The prosecution specified that the debacle of TerraUSD and Luna, self-proclaimed as stable, within the volatile digital market, dragged down several investment funds and small savers.
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