365Crypto
The courtroom felt tense as Do Kwon finally heard his fate. Judge Paul Engelmayer handed him a 15-year sentence for fraud tied to Terraform’s meltdown. The collapse erased around $40 billion from the crypto market, jolting investors worldwide. It marked one of the most damaging failures the industry has seen.
Kwon tried to show remorse, saying he’d spent years thinking about the crash and the damage left behind. He asked to serve his time in South Korea, where he also faces charges. The judge didn’t buy the softer requests. He said prosecutors’ 12-year suggestion was too low and the defense’s five-year proposal was “absurd.” He warned future fraudsters they’d also face long prison terms.
The judge said Kwon’s deception lasted years. He said investors knew crypto came with risk, but they didn’t sign up for lies. He described the fraud as unusually harmful because it exploited trust on a global scale. If Kwon hadn’t pled guilty, the sentence might have climbed even higher.
Victims were allowed to speak before sentencing. One investor said she sold her apartment and ended up nearly penniless. Others shared similar stories of loss and frustration. Kwon may serve half his sentence in the US, then be extradited to South Korea, where he could face up to 40 more years. His case now joins a growing list of major crypto trials, including Sam Bankman-Fried, Changpeng Zhao, and Alex Mashinsky.
Footnotes: “Wire fraud” refers to using electronic communication for illegal schemes. “Conspiracy” means planning wrongdoing with others.
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