Do Kwon Receives 15-Year Sentence for Crypto Fraud

Sat Dec 13 2025 20:51:39 GMT+0200 (Eastern European Standard Time)

In a landmark ruling in New York, cryptocurrency entrepreneur Do Kwon was sentenced to 15 years in prison for defrauding investors in a $40 billion cryptocurrency collapse. The court heard from victims about the personal toll of Kwon's actions.

Do Kwon, founder of Terraform Labs, was sentenced to 15 years in prison after pleading guilty to fraud that led to a $40 billion loss in the cryptocurrency market. Victims shared their harrowing experiences during the sentencing hearing, detailing how Kwon's actions devastated their lives, leading to lost investments, personal suffering, and even family breakdowns.

NEW YORK (MetaWorld.Media) — Cryptocurrency mogul Do Kwon was sentenced Thursday to 15 years in prison for misleading investors who lost billions when his company’s crypto ecosystem collapsed in 2022.

Kwon’s sentencing by a federal judge in New York City follows his guilty plea in August to fraud charges, resulting from Terraform Labs' monumental $40 billion cryptocurrency crash.

Prosecutors state Kwon misled investors into believing TerraUSD, described as a reliable “stablecoin,” was secure while it was actually propped up by external funds that created a facade of stability.

Victims present in court shared heartbreaking accounts of life-altering consequences due to the collapse. One individual reported that their family was torn apart, and they were left scraping by on meager savings after their investments disappeared.

The court heard accounts from various victims, emphasizing Kwon's role in this financial tragedy, with losses described as devastating—a striking reminder of the personal impacts behind mere numbers in financial reports.

The collateral damage caused by Kwon’s actions was reportedly larger than the combined losses from notorious ventures like that of Sam Bankman-Fried's FTX. Sentencing guidelines recommended about 25 years in prison, but federal prosecutors requested 12 years considering his guilty plea and time he spent in custody.

Kwon initially fled Singapore for Serbia and then Montenegro after his assets were frozen, using a falsified passport that eventually led to his arrest and extradition to the U.S.

The court will thoroughly assess the human cost of Kwon's actions moving forward as they finalize his sentence; Kwon has agreed to forfeit over $19 million as restitution to the victims.

In a letter, Kwon expressed remorse, stating, “I alone am responsible for everyone’s pain,” acknowledging the misrepresentation created by his actions.