TechFlow, Dec 15 — According to Cryptonews, Do Kwon, co-founder of Terraform Labs, may still face a second trial in South Korea after being sentenced to 15 years in a U.S. federal court in Manhattan for orchestrating the $40 billion collapse of TerraUSD.
South Korean prosecutors are seeking a prison term of over 30 years for Do Kwon on charges of violating capital markets laws, reports said. The 34-year-old South Korean national could apply to serve the remainder of his sentence in South Korea after completing half of it. Approximately 200,000 South Korean investors lost around 3 trillion won ($204 million) in the crash.
Last week, U.S. District Judge Paul Engelmayer stated, "Few frauds in the history of federal prosecutions have caused such devastating harm." Do Kwon has admitted to intentionally participating in a scheme between 2018 and 2022 to defraud purchasers of Terraform Labs' cryptocurrencies, which led to the May 2022 collapse of the TerraUSD stablecoin and Luna token, triggering a chain reaction across the cryptocurrency market.
