Do Kwon Sentenced to 15 Years in United States Court for Forty Billion Dollar Crypto Fraud.
In Manhattan, a South Korean crypto entrepreneur, Do Kwon received a fifteen year prison sentence for what prosecutors described as one of the largest frauds in the history of digital finance. Kwon, once praised as a rising star in the cryptocurrency world, had pleaded guilty in August to wire fraud and conspiracy to defraud investors. His company’s digital currencies, TerraUSD and LUNA, collapsed in May twenty twenty two, wiping out about forty billion dollars in value and sending shock waves through global markets. In the judgement delivered by Judge Paul Engelmayer of the Southern District of New York, the court held that Kwon misled investors by promoting TerraUSD as a stable and reliable coin. Investigators later found that the currency’s one to one link to the United States dollar had been quietly supported through hidden market operations rather than the automatic balancing system Kwon claimed. United States prosecutors said the collapse ruined savings, disrupted the wider crypto sector, and exposed what they called a pattern of deception. The judge imposed a sentence even tougher than what the prosecution had requested, describing the case as a clear warning to others in the industry. Alongside the prison term, Kwon will forfeit significant assets tied to the scheme. United States authorities noted that he may later be transferred to South Korea, where additional charges await.
| 2025-12-12 11:52:25