NEW YORK (RTW News) — Cryptocurrency mogul Do Kwon was sentenced Thursday to 15 years in prison for misleading investors who lost billions when his company’s crypto ecosystem collapsed in 2022.
Kwon’s sentencing by a federal judge in New York City follows his guilty plea in August to fraud charges related to Terraform Labs’ $40 billion cryptocurrency crash. His company had marketed the TerraUSD as a safe “stablecoin,” but prosecutors revealed that it was an illusion that crumbled, causing a ripple effect of crises throughout cryptocurrency markets.
Victims spoke out in court, detailing the personal devastation from Kwon’s actions. Many described the loss of life savings, significant lifestyle changes, and emotional turmoil. One victim reported losing his marriage due to the financial disaster, emphasizing that Kwon ‘weaponized investors' trust’ for personal gain.
Prosecutors highlighted that the impact of Kwon's fraud surpassed the combined losses from notorious figures like Sam Bankman-Fried and Karl Sebastian Greenwood, exacerbating the situation for charities and families relying on these investments.
After fleeing from Singapore to Montenegro under a false identity, Kwon was extradited to the U.S. in March 2023. Judge Paul A. Engelmayer granted a lighter sentence than the typical 25 years, considering Kwon's guilty plea and prior incarceration in Montenegro.
According to the sentencing report, Kwon agreed to forfeit over $19 million as part of his plea deal. During sentencing, he acknowledged his actions led to significant harm, admitting responsibility for the pain caused to investors and expressing regret for his misrepresentations.
A prosecutor summarized Kwon’s actions as 'fraud executed with arrogance, manipulation and total disregard for people,' urging the court to consider the human cost of His fraud in light of the $40 billion market value erased after the collapse.
Kwon’s sentencing by a federal judge in New York City follows his guilty plea in August to fraud charges related to Terraform Labs’ $40 billion cryptocurrency crash. His company had marketed the TerraUSD as a safe “stablecoin,” but prosecutors revealed that it was an illusion that crumbled, causing a ripple effect of crises throughout cryptocurrency markets.
Victims spoke out in court, detailing the personal devastation from Kwon’s actions. Many described the loss of life savings, significant lifestyle changes, and emotional turmoil. One victim reported losing his marriage due to the financial disaster, emphasizing that Kwon ‘weaponized investors' trust’ for personal gain.
Prosecutors highlighted that the impact of Kwon's fraud surpassed the combined losses from notorious figures like Sam Bankman-Fried and Karl Sebastian Greenwood, exacerbating the situation for charities and families relying on these investments.
After fleeing from Singapore to Montenegro under a false identity, Kwon was extradited to the U.S. in March 2023. Judge Paul A. Engelmayer granted a lighter sentence than the typical 25 years, considering Kwon's guilty plea and prior incarceration in Montenegro.
According to the sentencing report, Kwon agreed to forfeit over $19 million as part of his plea deal. During sentencing, he acknowledged his actions led to significant harm, admitting responsibility for the pain caused to investors and expressing regret for his misrepresentations.
A prosecutor summarized Kwon’s actions as 'fraud executed with arrogance, manipulation and total disregard for people,' urging the court to consider the human cost of His fraud in light of the $40 billion market value erased after the collapse.
