Do Kwon sentenced to 15 years in prison tied to $40 billion Terra crypto collapse
Do Kwon, founder of Terraform Labs, was sentenced to 15 years in prison for fraud related to the $40 billion Terra/Luna collapse.Summary
Do Kwon, the co-founder of Terraform Labs and creator of TerraUSD and Luna, has been sentenced to 15 years in federal prison for fraud and conspiracy related to the 2022 collapse of the Terra ecosystem. U.S. District Judge Paul Engelmayer exceeded both the prosecution's request of 12 years and Kwon’s legal team’s recommendation of 5 years. Kwon pleaded guilty in August to charges of conspiracy to defraud and wire fraud, admitting to falsely claiming TerraUSD regained its $1 peg through algorithmic means when, in reality, he secretly arranged for a trading firm to artificially inflate the price. The collapse in May 2022 resulted in a $40 billion loss in market value within three days, causing significant disruption throughout the crypto industry. Kwon also settled with the SEC, agreeing to pay an $80 million civil penalty and a permanent ban from the crypto sector as part of a larger $4.55 billion settlement with Terraform Labs.
(Source：Crypto Briefing)