Terra Founder Do Kwon Sentenced to 15 Years for Crypto Fraud
Do Kwon, co-founder of Terraform Labs, received a 15-year prison sentence for orchestrating fraud schemes that led to billions in investor losses. The sentence exceeded federal prosecutors' request by three years, reflecting the scale of harm caused by Terra's collapse in May 2022.
Kwon admitted guilt to two fraud counts, acknowledging he misled investors in Terra's algorithmic stablecoin and luna token. The implosion erased over $40 billion in value and triggered a market-wide contagion. Court proceedings revealed Kwon's continued influence over supporters, some of whom applauded during his sentencing hearing.
The case centered on Kwon's concealment of a 2021 crisis at Terra, which he masked with external trading operations. Evidence showed he attacked critics on social media hours before the project's catastrophic failure. Kwon apologized in court, expressing hope that other crypto founders would learn from his downfall.
