Overview
- Kwon, co-founder of Terraform Labs, pleaded guilty in August to conspiracy to defraud and wire fraud tied to the 2022 TerraUSD/LUNA collapse that erased about $40 billion.
- U.S. District Judge Paul A. Engelmayer ordered roughly $19 million in forfeiture and credited Kwon for time already spent in custody before extradition.
- Prosecutors indicated they would support Kwon serving the second half of his sentence in South Korea, where a separate criminal case remains pending.
- The court received more than 300 victim letters describing severe losses, and prosecutors did not seek restitution due to the complexity of calculating claims.
- Kwon was arrested in Montenegro in March 2023 using a false passport and later extradited to the United States, after a separate SEC civil settlement of about $4.5 billion involving Terraform and Kwon.