Crypto mogul Do Kwon sentenced to 15 years in prison over $40B currency collapse | Latest Tech News
Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that misplaced an estimated $40 billion in 2022, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy.
Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, beforehand pleaded guilty and admitted to deceptive traders about a coin that was supposed to preserve a regular price during intervals of crypto market volatility.
Kwon was one of a number of cryptocurrency moguls to face federal expenses after a stoop in digital token costs in 2022 prompted the collapse of a quantity of corporations. US District Judge Paul A. Engelmayer handed down the sentence at a listening to in Manhattan.
Crypto Mogul Do Kwon, shown in 2023, was sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy. REUTERS
Prosecutors had requested for a sentence of at least 12 years in prison, saying the crash of Kwon’s Terra cryptocurrency induced billions of {dollars} in losses and triggered a cascade of crises in the crypto market. Kwon’s legal professionals had requested that he be sentenced to no more than 5 years so he can return to South Korea to face legal expenses.
Prosecutors charged Kwon in January with 9 legal counts for securities fraud, wire fraud, commodities fraud and money laundering conspiracy.
Kwon was accused of deceptive traders in 2021 about TerraUSD, a so-called stablecoin designed to preserve a worth of $1.
Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told traders a pc algorithm identified as “Terra Protocol” had restored the coin’s worth.
Kwon in custody in Montenegro in 2024. AP
Instead, Kwon organized for a high-frequency trading firm to secretly buy hundreds of thousands of {dollars} of the token to artificially prop up its price, according to charging paperwork.
Kwon pleaded guilty in August to two counts, conspiracy to defraud and wire fraud, and apologized in court for his conduct.
“I made false and misleading statements about why it regained its peg by failing to disclose a trading firm’s role in restoring that peg,” Kwon said. “What I did was wrong.”
Kwon agreed in 2024 to pay $80 million as a civil high quality and be banned from crypto transactions as half of a $4.55 billion settlement he and Terraform reached with the (*15*) and Exchange Commission.
He also faces expenses in South Korea. As half of his plea deal, prosecutors is not going to oppose Kwon’s potential utility to be transferred overseas after serving half his US sentence.
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For recent insights, professional coverage, and trending tech updates, go to us often by clicking right here.
