Sentencing is imminent for Do Kwon, the crypto entrepreneur convicted for a massive fraud that erased an estimated $40 billion in value. Kwon, who created the TerraUSD and Luna cryptocurrencies, will be sentenced in New York after pleading guilty to fraud and conspiracy.
His guilty plea encompassed admissions that he deliberately misinformed investors about the nature of the TerraUSD stablecoin. Investors were led to believe the asset would maintain a consistent value, a promise that proved fundamentally false.
Kwon’s prosecution is part of a broader US legal crackdown following the 2022 crypto market crash. That downturn revealed systemic issues and outright fraud, leading to the collapse of several prominent firms anchored in digital assets.
The decision now rests with US District Judge Paul A. Engelmayer, who will impose the sentence in a Manhattan courtroom. The hearing represents a culmination of a lengthy investigation into the Terra ecosystem’s failure.
In court filings, US prosecutors have recommended a prison sentence of at least 12 years, highlighting the unprecedented scale of the financial devastation. Conversely, Kwon’s defense has requested a cap of five years, emphasizing his cooperation and the desire for him to face justice in his home country of South Korea.
