Do Kwon, co-founder of Terraform Labs, has been sentenced to 15 years in prison for wire fraud and conspiracy to defraud, following the collapse of Terraform, which wiped out $40 billion from the crypto market in 2022. Kwon could be extradited to South Korea after serving seven and a half years in the US and may face an additional 40 years in his native country.
During the sentencing hearing, prosecutors revealed there were approximately 16,500 victims from the Terraform collapse, with six allowed to address the court and share their financial losses. One victim, Tatiana Dontsova, sold her apartment in Moscow to invest with Kwon, only to see $81,000 turn into $13. She is now homeless due to her losses.
Kwon was extradited from Montenegro to face charges in the US related to the 2022 collapse of the Terra ecosystem. With his conviction, he joins a list of former high-profile cryptocurrency executives facing legal repercussions, including FTX CEO Sam Bankman-Fried serving a 25-year sentence, former Binance CEO Changpeng Zhao serving four months before being pardoned, and former Celsius CEO Alex Mashinsky sentenced to 12 years.
Read more at Cointelegraph.com
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