Overview
- U.S. District Judge Paul Engelmayer is set to sentence the Terraform Labs co-founder at 11 a.m. in Manhattan.
- Prosecutors are seeking a 12-year term, while the defense asks for no more than five years with the possibility to apply for transfer after half the U.S. sentence.
- Kwon pleaded guilty in August to conspiracy to defraud and wire fraud and agreed to forfeit more than $19 million.
- Authorities estimate the 2022 collapse of TerraUSD and Luna wiped out roughly $40 billion and fueled wider market turmoil.
- Charging documents say a secret high-frequency trading firm helped restore TerraUSD’s peg in 2021 despite public claims of an automated fix, and a 2024 SEC settlement imposed an $80 million fine on Kwon plus $4.55 billion in corporate penalties.