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Do Kwon Sentenced to 15 Years in U.S. Prison Over TerraUSD/Luna Fraud

A judge called the scheme 'epic' fraud, imposing a term above prosecutors' 12-year request.

Overview

  • U.S. District Judge Paul A. Engelmayer delivered the 15-year sentence, exceeding prosecutors’ recommendation and far above the defense’s bid for five years.
  • Kwon pleaded guilty in August to conspiracy and wire fraud tied to Terraform Labs’ 2022 collapse, which erased roughly $40 billion in value.
  • The court ordered forfeiture of more than $19 million, and victim statements described severe financial and personal harm.
  • He was arrested in Montenegro in 2023 for using a false passport, extradited to the U.S., and will receive limited credit for custody served there.
  • Kwon still faces charges in South Korea, and under his plea deal prosecutors will not oppose a transfer after he serves half his U.S. term; a prior SEC case ended in a roughly $4.55 billion settlement and a crypto-activity ban.