Do Kwon, the founder and former CEO of Terraform Labs, has been sentenced to 15 years in prison for his role in the approximately $100 billion collapse in valuation of the Terra/Luna system, according to updates from Matthew Russell of Inner City Press.
The 34-year-old pleaded guilty in August to wire fraud and conspiracy to defraud after the US charged him in 2023.
Last week, Kwon’s lawyers requested a five-year sentence, arguing that the 12 years requested by prosecutors was “far greater than necessary” to achieve justice.
However, US prosecutors disagreed, claiming that five years was “utterly insufficient,” and accused Kwon of “underselling the gravity of his crimes.”
The judge additionally noted that he believed a more severe sentence than what the prosecutors were requesting was necessary, settling on the 15-year sentence that was handed down.
Kwon’s team also noted that he still faces another trial in South Korea, which carries a potential 40-year prison sentence, and pointed out that he’s already served three years “with more than half that time in brutal conditions in Montenegro.”
He also agreed to a $19 million forfeiture.
Read more: $800M crypto fugitive Ravid Yosef working at UK startup under new name
Following the conclusion of his topsy-turvy legal battle, Kwon joins other high-profile crypto criminals who have served time in the US.
These include Sam Bankman-Fried, who was handed 25 years for FTX-related fraud, conspiracy, and money laundering, and Alex Mashinsky, who was given 12 years for fraud relating to the manipulation of Celsius’s token.
Former Binance CEO Changpeng Zhao was sentenced to a more manageable four months last year for crimes related to violations of the Bank Secrecy Act.
One of the updates from Russell noted that Kwon will receive credit for time served, both in the United States and before his extradition. Additionally, he will be extradited to South Korea for the back half of his sentence.
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