Terra Founder Do Kwon Handed 15-Year Prison Sentence for Historic $40B Crypto Crash
Do Kwon, the founder of blockchain company Terraform Labs, was handed a 15-year jail term on Thursday for his involvement in the collapse of cryptoassets Luna and UST, which resulted in a $40 billion loss three years ago. Judge’s Verdict When delivering his verdict, US Judge Paul Engelmayer said Kwon chose to lie to investors
Andrew Richard2 min read
Do Kwon, the founder of blockchain company Terraform Labs, was handed a 15-year jail term on Thursday for his involvement in the collapse of cryptoassets Luna and UST, which resulted in a $40 billion loss three years ago.
When delivering his verdict, US Judge Paul Engelmayer said Kwon chose to lie to investors on X, formerly Twitter, giving them fake assurances that their money was safe. At one point, the 33-year-old fallen crypto guru urged his X followers to deploy more capital in Luna and UST, a move that would later lead to significant losses.
One Ukrainian man who was affected by Kwon’s crypto empire crash appeared before Engelmayer and narrated his ordeal. He said the affirmations made by the accused gave him confidence to invest his 17-year savings of $200,000 in UST to earn the promised 20% annual yield. However, the UST stablecoin depegged a few weeks later, with the victim losing over 70% of their capital.
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