Do Kwon sentenced to 15 years in federal prison by U.S. federal judge

On December 12, the Southern District of New York Federal Court announced on Thursday that Terraform Labs founder Do Kwon was sentenced to 15 years in prison for fraud and other misconduct related to the collapse of the Terra and Luna tokens. The sentence exceeds the prosecutors’ earlier recommendation. Prosecutors had advocated for a 12-year sentence, citing Kwon’s previous misconduct and the large scale of the fraud; while Kwon’s legal team requested only 5 years. Judge Paul Engelmayer of the U.S. District Court stated that Kwon “chose to lie” and “made the wrong choice.” Kwon was criminally indicted in March 2023 on charges including conspiracy to commit fraud, commodities fraud, telecommunications fraud, securities fraud, conspiracy to commit fraud, and conspiracy to engage in market manipulation and money laundering. He later pleaded guilty to telecommunications fraud and conspiracy to commit fraud in August 2024. Without a plea agreement, Kwon could face up to 135 years in prison if convicted on all nine counts. After agreeing to plead guilty to two charges, his maximum sentence was reduced to 25 years. The prosecution also sought a fine of $19 million.