Do Kwon Sentenced to 15 Years in Prison by US Federal Judge

BlockBeats News, December 12th - The Southern District of New York Federal Court announced on Thursday that Terraform Labs founder Do Kwon has been sentenced to 15 years in prison for his involvement in the Terra and Luna token collapse fraud. The sentence exceeds the prosecution's previous recommendation. Prosecutors had advocated for a 12-year sentence citing Kwon's prior misconduct and the significant scale of the fraud in this case, while Kwon's legal team had requested a 5-year sentence.

U.S. District Court Judge Paul Engelmayer stated that Kwon "chose to lie" and "made the wrong choice." Kwon was criminally charged in March 2023, with charges including conspiracy to commit fraud, wire fraud, telecommunications fraud, securities fraud, conspiracy to commit fraud, as well as conspiracy to engage in market manipulation and money laundering. He later pleaded guilty to telecommunications fraud and conspiracy to commit fraud in August 2024.

If not for the plea deal, Kwon could have faced up to 135 years in prison if convicted on all nine charges. By agreeing to plead guilty to two charges, the maximum sentence he faces has been reduced to 25 years. Prosecutors had also sought a $19 million fine.

Kwon may still face legal proceedings in South Korea in the future. He must serve at least half of his sentence in the U.S. before being eligible for extradition to South Korea, and the 17 months he previously served in Montenegro will also be credited towards his sentence.