The legal saga surrounding Do Kwon, co-founder of Terraform Labs, has culminated in a significant ruling, with the crypto magnate sentenced to 15 years in prison this Thursday.
This decision follows a tumultuous period marked by the collapse of two digital currencies created by the firm, which collectively erased an estimated $40 billion from the market in 2022, leading to widespread repercussions within the broader cryptocurrency industry.
Do Kwon’s 15-Year Sentence
During the sentencing hearing, US District Judge Paul A. Engelmayer underscored the seriousness of Do Kwon’s actions, stating, “Your fraud was unusually serious. For four years you publicly lied to the market.”
The judge emphasized that Kwon misrepresented TerraUSD as a stablecoin backed by a system designed to sustain its peg to the dollar, asserting that Kwon’s claims were ultimately fraudulent when the peg faltered.
Judge Engelmayer remarked that Do Kwon’s actions had devastating effects, contributing to the collapse of investments for “hundreds of thousands of investors.” He noted that a lighter sentence would be unacceptable, stating:
“Five years would be so implausible it would require appellate reversal. Others must be deterred. People are watching this [live]. There will be future entrepreneurs. This case will serve as a reminder of breaking bad and what happens.”
With that, the US District Judge imposed a 15-year sentence, factoring in time already served—17 months and eight days while in pre-extradition custody.
Judge Hints At Fort Dix Transfer
Interestingly, there were suggestions from both the judge and prosecutors that Kwon could be transferred to Fort Dix, a facility where some high-profile inmates are held. There’s also the possibility that part of his sentence could be served in South Korea, where he is facing additional legal challenges.
In January, Do Kwon was charged with nine criminal counts that included securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
Featured image from ABC, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
#Terraform #Labs #CoFounder #Kwon #Sentenced #Years #Prison