NEW YORK (AP) — Cryptocurrency mogul Do Kwon was sentenced to 15 years in prison on Thursday for deceiving investors who suffered enormous losses when his crypto enterprise collapsed in 2022.
The sentencing, handed down by a federal judge in New York City, followed Kwon's guilty plea in August for fraud charges linked to Terraform Labs' shocking $40 billion crash.
Kwon had promoted the TerraUSD as a dependable stablecoin, falsely assuring investors of its stability. However, prosecutors asserted this was merely an illusion that ultimately crumbled, causing severe consequences for investors and igniting a series of crises in the crypto market.
As part of a plea agreement, Kwon previously consented to forfeit over $19 million, which authorities deemed ill-gotten funds.
During the sentencing, victims described in heartbreaking detail how Kwon's actions dismantled their lives. One man recounted how his life savings evaporated, leading to family upheaval, including divorce and college dropouts.
Victims vividly depicted the personal effects of Kwon's fraud. With losses dwarfing those from infamous cases like FTX's Sam Bankman-Fried and OneCoin, Kwon's actions had a far-reaching impact.
Although Kwon's sentencing guidelines suggested approximately 25 years, prosecutors requested a 12-year term, citing his cooperation and circumstances of his extradition from Montenegro after fleeing several countries.
Victims shared their stories at the hearing; some faced debilitating debts, while others reported serious mental tolls from their losses. One woman recounted pleading with her family to invest, only to see their trust shattered.
The judge will deliberate on the final sentence today, allowing Kwon a chance to address the court. In a previous letter, Kwon expressed remorse, blaming his actions on misguided ambition and urging the court to recognize the severe implications of his choices.
The fallout from Kwon's crypto empire remains a stark reminder of the dangers lurking in the financial landscape, particularly in the unregulated world of cryptocurrency.
