Do Kwon, the mastermind behind the Terra collapse, sentenced to 15 years; $40 billion scam faces liquidation

【ChainNews】The verdict in the Terra-Luna collapse case has been finalized—Do Kwon has been sentenced to 15 years in prison by the Southern District Court of New York, a number that even exceeded prosecutors’ expectations. The disaster in 2022 that caused $40 billion to evaporate in an instant finally has someone paying the price.

The case is shocking upon review: last March, Do Kwon was hit with six charges at once—conspiracy to commit fraud, commodity fraud, wire fraud, securities fraud, market manipulation, and conspiracy to launder money. The prosecution initially recommended a 12-year sentence, while the defense lawyers fought hard to argue for 5 years. Ultimately, Judge Paul Engelmayer handed down a heavy sentence of 15 years and publicly commented that Do Kwon “chose to lie” and “made the wrong choice.”

Even more dramatically, in August last year, Do Kwon pleaded guilty to wire fraud and conspiracy to commit fraud. This partial plea strategy clearly did not lead to a lighter sentence. He now also faces legal accountability in South Korea. According to regulations, he must serve at least half of his sentence in the U.S. before applying to transfer to South Korea for continued imprisonment. The 17 months he served in Montenegro can be credited toward this.

Investors in the Terra ecosystem may have to wait a long time to see this founder regain his freedom.