Terraform Labs founder Do Kwon sentenced to 15 years over $40 billion Terra-Luna collapse: Inner City Press
Terraform Labs founder Do Kwon received a 15-year prison sentence for his role in the $40 billion Terra-Luna collapse.Summary
Terraform Labs founder Do Kwon was sentenced to 15 years in prison in the Southern District of New York for his involvement in the 2022 collapse of the Terra and Luna tokens, which resulted in a $40 billion loss. U.S. District Judge Paul Engelmayer handed down the sentence, which exceeded the 12 years prosecutors sought, while Kwon's lawyers had argued for five years. Kwon was criminally charged in March 2023 and later pleaded guilty in August to wire fraud and conspiracy to defraud. The charges stem from the failure of Terra USD, an algorithmic stablecoin linked to the Luna governance token via a faulty mechanism. Kwon, who faced a maximum of 25 years after his plea deal, was extradited to the U.S. in December 2024 after being arrested in Montenegro for using forged travel documents. He may face further legal proceedings in South Korea.
(Source：The Block)