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Crypto mogul Do Kwon sentenced to 15 years in prison for $40 billion stablecoin fraud
Do Kwon pleaded guilty to fraud that caused $40 billion losses, with an estimated one million victims impacted worldwide, and was sentenced to 15 years in U.S. federal court.
- On Thursday, one-time cryptocurrency mogul Do Kwon was sentenced to 15 years in prison, with Judge Paul Engelmayer calling it `a fraud on an epic, generational scale`.
- Promoted as a dollar-pegged token, TerraUSD's $1 peg was secretly supported by outside cash infusions before plunging far below $1, prosecutors say.
- Around $40 billion in market value was erased for holders of TerraUSD and Luna, and the judge estimated there may have been a million victims supported by more than 300 victim letters.
- Judge Paul Engelmayer rejected Kwon's bid to serve time in South Korea and called the U.S. prosecutors' 12-year recommendation `unreasonably lenient` and the defense's five-year request `utterly unthinkable and wildly unreasonable`.
- Kwon pleaded guilty in Manhattan federal court in August and agreed to forfeit over $19 million after his March 23, 2023, arrest by Montenegro authorities, then extradited to the U.S.
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TerraUSD Founder Do Kwon Jailed After $40B Crypto Collapse
The founder of TerraUSD and Luna cryptocurrencies, Do Kwon, was sentenced to 15 years in prison earlier this month. He was charged with fraud and eventually pleaded guilty. TerraUSD and Luna lost all their value overnight, triggering a $40 billion (£29.7 billion) crash that led to the collapse of the cryptocurrency industry and major firms in 2022. Fraud on An Epic Scale Victims had claimed that Kwon misused their trust to convince them that the…
·United Kingdom
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South Korean businessman Do Kwon, founder of Terraform Labs, was sentenced to 15 years in prison after pleading guilty to fraud.
He apologized after hearing victims describe the consequences of his fraud.
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Total News Sources244
Leaning Left26Leaning Right27Center67Last UpdatedBias Distribution56% Center
Bias Distribution
- 56% of the sources are Center
56% Center
L 22%
C 56%
R 22%
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