Do Kwon, the founder of Terraform Labs, was sentenced to 15 years in prison for fraud, after his bankruptcy led to losses of 40 billion dollars.

Do Kwon, the cryptocurrency mogul from South Korea, has been sentenced to 15 years in prison by a court in New York for fraud, following the bankruptcy of his company, Terraform Labs, which led to losses of 40 billion dollars for investors and shook global cryptocurrency markets. Kwon, who created the cryptocurrencies TerraUSD and Luna, was accused of orchestrating elaborate schemes to attract investors, including American investment firms. In May 2022, the two cryptocurrencies entered a downward spiral, and Kwon fled South Korea before the collapse, being arrested in March 2023 in Montenegro with a fake passport. After the conviction, Kwon was ordered to repay over 19 million dollars from his illegal gains. He may also serve his sentence in South Korea, provided he spends at least half of the time in the United States. This situation has drawn attention to cryptocurrency regulations in the context of recent controversies.