Do Kwon Sentenced to 15 Years in Prison, Crypto's Prison All-Stars Welcome Another Heavyweight Guest
Do Kwon, co-founder of Terraform Labs, has been sentenced to 15 years in prison by a U.S. federal court. The ruling follows his extradition from Montenegro and guilty plea to charges of conspiracy fraud and wire fraud.
Kwon was the mastermind behind Terra (LUNA) and its algorithmic stablecoin UST, which collapsed dramatically in May 2022, erasing tens of billions in market value and triggering a prolonged crypto market downturn. The failure of Terra’s “algorithmic” mechanism—which lacked sufficient collateral—led to widespread investor losses, with reports of tragic outcomes including suicides.
After the collapse, Kwon fled South Korea and evaded international authorities using forged documents before eventually being captured in Montenegro in March 2023. He was later extradited to the U.S. in late 2024.
Prosecutors had sought a 12-year sentence, while Kwon’s defense argued for five years. The judge, however, imposed a stricter sentence, citing the unprecedented scale of fraud, Kwon’s attempt to evade justice, and the need for deterrence.
Kwon now joins other high-profile convicted crypto figures like SBF and Alex Mashinsky, marking a symbolic end to an era of reckless expansion and fraud in the industry.
Odaily星球日报12/12 00:50
