Do Kwon, the co-founder of Terraform Labs, was sentenced Thursday to 15 years in US federal prison after pleading guilty to fraud related to the collapse of the TerraUSD (UST) stablecoin and the Luna token, which collectively wiped out approximately $40 billion in investor funds.
The 34-year-old pleaded guilty in August to wire fraud and conspiracy to commit wire, securities, and commodities fraud.
In exchange, federal prosecutors agreed not to pursue a sentence exceeding 12 years and dropped seven other charges.
During the sentencing hearing in Manhattan, Judge Paul Engelmayer described the scheme as “a fraud on an epic, generational scale” and criticized Kwon for misleading investors.
He rejected the government’s 12-year recommendation as “unreasonably lenient” and the defense’s request for five years as “utterly unthinkable and wildly unreasonable.”
Victims addressed the court, describing significant financial and personal losses, including depleted retirement savings and charitable funds.
In his remarks, Kwon apologized for the harm caused and asked for leniency, citing family considerations.
Do Kwon’s legal proceedings also include ongoing or potential charges in other jurisdictions, including South Korea, where he previously faced investigations related to the Terra collapse.