- A US court sentenced ex-Terra boss Do Kwon to 15 years in prison for the 2023 Terra Luna scam.
- The criminal bust wiped out $40 billion and sparked the most extensive international investigation into the crypto industry to date.
A US federal court sentenced Do Kwon to 15 years in prison, making it the last Kapitel closed in arguably the industry’s second-largest crypto scam in one of the biggest financial collapses in the world Crypto-Sector completed. The Verdict follows his guilty plea in New York and marks the end of a global persecution that spanned several countries over almost a year.
TerraUSD collapse wiped out $40 billion in a few days
TerraUSD is a stablecoin developed by Terraform Labs that uses an algorithm instead of regular Reservesused . Do Kwon touted TerraUSD and Luna as the next major development driver of the market. This attracts billions of dollars from investors around the world and has been widely praised in the media in South Korea. This high-profile trend was highlighted by its inclusion in the Forbes Asia 30 Under 30 list in 2019 even reinforced .
In May 2022, TerraUSD lost its peg, triggering a reaction that wiped out both tokens and caused the boom to collapse. He lost within fewer daysfast 50 billion dollars in value .
Terra founder expects further criminal proceedings in South Korea
Kwon had fled South Korea and was outside the country for months before the collapse. He was finally arrested in Montenegro in March 2023when he tried to come out of the country with a false passport. He was extradited to the USA in 2024. The public prosecutor filed show how Kwon the investors about the activities of Terraform Labs, including US-based companies, lied to .
Through his behavior, he knowingly strengthened trust in the tokens and concealed the threats within the system. In addition to his prison sentence, he must pay over $19 million.
Kwon faces serious charges in South Korea. US records show he could be extradited there after serving at least half of his sentence.
Crypto scams continue
The case highlights the long-term threats in the crypto world. The European authorities have an international cryptocurrency fraud network that laundered over 700 million euros. The operation targeted fraudulent online investment providers. Several suspects were arrested in Germany, Spain, Cyprus and Israel, and significant amounts of money and property were also confiscated.
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