TechFlow news, December 12 — According to TheBlock, Terraform Labs founder Do Kwon was sentenced to 15 years in prison on Thursday by a New York court over the collapse of LUNA and TerraUSD tokens, which caused $40 billion in losses.
U.S. District Judge Paul Engelmayer stated that Kwon "chose to lie" and "made wrong choices." Kwon was criminally charged in March 2023, with accusations including conspiracy to commit fraud, commodities fraud, wire fraud, securities fraud, conspiracy to commit fraud, and conspiracy to manipulate markets and launder money. He later pleaded guilty in August 2024 to charges of wire fraud and conspiracy to commit fraud.
Without a plea deal, Kwon could have faced up to 135 years in prison if convicted on all nine counts. After agreeing to plead guilty to two charges, his maximum sentence was reduced to 25 years. Prosecutors had previously sought a $19 million fine.
