The post US Judge Sentences Do Kwon to 15 Years for Terra Fraud Role appeared on BitcoinEthereumNews.com.

Do Kwon, co-founder of Terraform Labs, was sentenced to 15 years in prison for wire fraud and conspiracy to defraud in the Terra ecosystem collapse that erased $40 billion from the crypto market in 2022. The ruling came after victim testimonies in a New York federal court. The sentencing followed Do Kwon’s guilty plea, highlighting accountability in crypto fraud cases. Judge Paul Engelmayer rejected both prosecution’s 12-year and defense’s 5-year recommendations as unreasonable. Victims shared devastating losses, including one who became homeless after investing $81,000 that dwindled to $13. Do Kwon sentenced to 15 years in prison for Terraform Labs fraud. Learn about the Terra collapse impact, victim stories, and crypto regulation lessons. Stay informed on key crypto news. What is Do Kwon’s Prison Sentence for the Terraform Labs Fraud? Do Kwon sentenced to 15 years in federal prison after pleading guilty to wire fraud and conspiracy to defraud investors in the Terraform Labs case. This decision by Judge Paul Engelmayer in the US District Court for the Southern District of New York addresses Kwon’s central role in the 2022 Terra ecosystem collapse, which resulted in approximately $40 billion in market losses for investors worldwide. The sentence underscores the severe consequences for fraudulent activities in the cryptocurrency sector. How Did Victim Testimonies Influence the Do Kwon Sentencing? The sentencing hearing featured emotional statements from several Terraform Labs victims, providing the court with firsthand accounts of the financial devastation caused by the Terra collapse. Prosecutors noted around 16,500 affected individuals based on bankruptcy claims, with six victims speaking via phone. One victim, Tatiana Dontsova, described selling her Moscow apartment to invest, only to see her $81,000 investment vanish, leaving her with $13 and now homeless in Tbilisi. These testimonies emphasized the human cost, influencing Judge Engelmayer’s view that Kwon’s actions exploited…

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Filed under: News - @ December 12, 2025 3:16 am