Terraform Labs founder Do Kwon sentenced to 15 years in prison by a U.S. judge.

PANews reported on December 12th that, according to The Block, Terraform Labs founder Do Kwon has been sentenced to 15 years in prison for his role in the Terra-Luna token collapse, which wiped out $40 billion in 2022. Kwon was sentenced on Thursday in the Southern District of New York, a sentence exceeding the prosecution's initial demands. Prosecutors argued that given Kwon's past misconduct and the sheer scale of the fraud, he should receive a 12-year prison sentence; however, Kwon's lawyers argued for a mere 5-year sentence.

U.S. District Judge Paul Engelmayer stated that Do Kwon "chose to lie" and "made the wrong choice." In March 2023, Do Kwon was criminally charged with conspiracy to commit fraud, merchandise fraud, wire fraud, securities fraud, conspiracy to commit fraud, and conspiracy to manipulate the market and launder money. In August of the same year, Do Kwon subsequently pleaded guilty to wire fraud and conspiracy to commit fraud. Do Kwon may face further legal challenges in South Korea; he must serve at least half of his sentence before he can apply for transfer to South Korea, and it has been reported that the 17 months he served in Montenegro prison will be counted towards his sentence.