The US District Court for the Southern District of New York handed down the sentence to the Terraform Labs co-founder. Do Kwon will serve 15 years for orchestrating the scheme that wiped roughly $50 B from the market in May 2022. The final term surpassed even the 12 years sought by prosecutors.
The Court’s Hard Line
Judge Engelmeyer dismissed the defense’s plea for five years as unconscionable. He also found the government's 12-year recommendation insufficient.
“A showcase punishment is necessary to deter future Do Kwons from attempting similar scams”, he stated.
The court weighed all aggravating factors: the flight to Serbia and Montenegro, use of forged passports, and attempts to move assets. The judge branded Kwon’s actions during the UST de-pegging as vile. While the founder publicly urged retail investors to hold their positions, he and insiders were secretly cashing out.
I Don’t Debate the Poor
Kwon’s public persona also faced scrutiny. Engelmeyer read aloud the infamous tweet where the Terra founder snapped at a critic: I don’t debate the poor on Twitter. The judge noted that this episode exposed the defendant's true character — someone who used his status to humiliate skeptics for years.
Victims Versus the Cult
Victims testified at the hearing, sharing stories of lost life savings and suicidal thoughts following the ecosystem's collapse. The judge contrasted these raw accounts with support letters submitted by the defense. Engelmeyer compared the letter writers to cult members who were still under a delusion.
Kwon admitted guilt in his final statement. He wept when speaking of his wife and daughter. The court expressed sympathy for his family but stressed that pity for Kwon was misplaced given the hundreds of ruined lives.
What Happens to Kwon Next
The 17 months served in Montenegro will count toward the sentence. Kwon must complete at least half his term in the US before he can request a transfer to South Korea. Sealed indictments and new charges await him there.
This sentencing closes one of the darkest chapters of the 2022 crypto winter. US Attorney for the Southern District of New York Jay Clayton remarked after the trial that the office “would continue hunting down digital asset fraudsters, no matter where in the world they try to hide”.
Read also:
- LUNC Surges 50% Amid Do Kwon Uncertainty And Massive Token Burns
- Do Kwon Requests 5-Year Cap on Prison Sentence — Bloomberg
- Do Kwon May Pursue Plea Deal in Terraform Labs Collapse
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