Terraform Labs founder Do Kwon was sentenced to 15 years in prison by a U.S. judge
According to The Block, Terraform Labs founder Do Kwon has been sentenced to 15 years in prison for his role in the Terra-Luna token collapse. In 2022, this collapse resulted in the evaporation of $40 billion. Do Kwon was sentenced on Thursday in the Southern District of New York, a term that exceeds the sentencing recommendation previously sought by prosecutors.Prosecutors pointed out that, given Do Kwon's prior misconduct and the scale of the fraud, he should be sentenced to 12 years in prison; while Do Kwon's lawyers argued for only a 5-year sentence. U.S. District Judge Paul Engelmayer stated that Do Kwon "chose to lie" and "made the wrong choice." In March 2023, Do Kwon was criminally charged with conspiracy to commit fraud, commodity fraud, wire fraud, securities fraud, conspiracy to commit fraud, as well as involvement in market manipulation and money laundering conspiracy. In August of the same year, Do Kwon subsequently pleaded guilty to wire fraud and conspiracy to commit fraud. Do Kwon may face additional legal challenges in South Korea, where he must serve at least half of his sentence before he can apply to serve his time in South Korea, and it has been reported that the 17 months he has spent in a Montenegrin prison will count towards his sentence.
