Terra founder Do Kwon gets 15 years in prison for ‘epic’ $40 billion crypto fraud

Cryptocurrency fraudster To Kwon was sentenced to 15 years in prison on Thursday for complicity in the infamous Terra (CRYPTO: LUNA) collapse that triggered one of the market’s worst crashes.

‘A generational fraud’

U.S. District Judge Paul A. Engelmayerwho handed down the verdict, criticized Kwon for repeatedly misleading investors who had invested their savings with him, according to Reuters.

The judge described the fraud as “epic” and “generative” and asserted that few frauds in the history of federal prosecution have caused so much damage.

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

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Punishment heavier than what DOJ asked for

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

Kwon had requested the court to do so to limit his sentence to five years, on the grounds that he had accepted responsibility for his role in Terra’s collapse.

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

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Disclaimer: This content was produced in part with the help of Benzinga Neuro and was reviewed and published by Benzinga’s editorial staff.

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