Terra Founder Do Kwon Receives 15-Year Prison Sentence For 'Epic' $40 Billion Crypto Fraud

Cryptocurrency fraudster Do Kwon was handed a 15-year prison sentence Thursday for abetting the infamous Terra (CRYPTO: LUNA) collapse that triggered one of the market’s worst crashes.

‘A Generational Fraud’

U.S. District Judge Paul A. Engelmayer, who pronounced the sentence, slammed Kwon for repeatedly deceiving investors who had invested their life savings with him, according to Reuters.

The judge described the fraud as “epic” and “generational,” asserting that few frauds in the history of federal prosecution have inflicted as much harm.

During a hearing at the Manhattan federal court, Kwon expressed regret for his actions and apologized to the victims for the “great” losses he had caused.

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Sentence Harsher Than What DOJ Asked

The Justice Department had urged the federal judge to impose a full 12-year prison sentence on Kwon, noting that Kwon’s $40 billion Terra–LUNA implosion caused more damage than several comparable cases.

Kwon had petitioned the court to limit his sentence to five years, arguing that he had accepted responsibility for his role in the Terra collapse.

Kwon, co-founder of Terraform Labs, was charged with misleading investors about the stability of LUNC and the associated stablecoin, TerraUSD. The two coins imploded in May 2022, devastating retail investors and precipitating a cryptocurrency bear market.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo Courtesy: July Ko on Shutterstock.com