Terraform Labs Co-Founder Do Kwon Sentenced To 15 Years In Prison

The authorized saga surrounding Do Kwon, co-founder of Terraform Labs, has culminated in a major ruling, with the crypto magnate sentenced to 15 years in jail this Thursday. 

This choice follows a tumultuous interval marked by the collapse of two digital currencies created by the agency, which collectively erased an estimated $40 billion from the market in 2022, resulting in widespread repercussions throughout the broader cryptocurrency business.

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 critical. For 4 years you publicly lied to the market.” 

The choose emphasised that Kwon misrepresented TerraUSD as a stablecoin backed by a system designed to maintain its peg to the greenback, asserting that Kwon’s claims have been in the end fraudulent when the peg faltered.

Judge Engelmayer remarked that Do Kwon’s actions had devastating results, contributing to the collapse of investments for “lots of of 1000’s of traders.” He famous {that a} lighter sentence can be unacceptable, stating: 

“Five years can be so implausible it could require appellate reversal. Others should be deterred. People are watching this (*15*). There will likely be future entrepreneurs. This case will function a reminder of breaking unhealthy and what occurs.” 

With that, the US District Judge imposed a 15-year sentence, factoring in time already served—17 months and eight days whereas in pre-extradition custody.

Judge Hints At Fort Dix Transfer

Interestingly, there have been options from each the choose and prosecutors that Kwon might be transferred to Fort Dix, a facility the place some high-profile inmates are held. There’s additionally the likelihood that a part of his sentence might be served in South Korea, the place he’s going through further authorized challenges.

In January, Do Kwon was charged with 9 legal counts that included securities fraud, wire fraud, commodities fraud, and conspiracy to commit cash laundering. 

Featured picture from ABC, chart from TradingView.com