Do Kwon Sentenced 15 Years

Do Kwon, co-founder of Terra (blockchain), was sentenced to 15 years in a US federal prison for an 'epic fraud' that led to the collapse of his TerraUSD and Luna cryptocurrencies in 2022, wiping out an estimated $40 billion. US District Judge Paul A. Engelmayer delivered the sentence in Manhattan, criticizing Kwon for deceiving investors. Kwon pleaded guilty to wire fraud and conspiracy to commit wire, securities, and commodities fraud, admitting he misled investors about TerraUSD's stability. The collapse, which affected up to a million people, triggered a wider crisis in the crypto market. Kwon attempted to rebuild Terra (blockchain) in Singapore before fleeing to the Balkans with a false passport. He was arrested in Montenegro in March 2023 and extradited to the United States. As part of his plea deal, Kwon agreed to forfeit over $19 million. He also faces prosecution in his native South Korea. The judge rejected Kwon's request to serve his sentence in South Korea and deemed the government's recommended 12-year sentence 'unreasonably lenient'. The losses from Terra (blockchain)' collapse exceeded those from the frauds involving FTX founder Sam Bankman-Fried and OneCoin co-founder Karl Sebastian Greenwood combined.