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New York Judge Sentences Do Kwon to 15 Years for Terra/Luna Fraud

The punishment follows his guilty plea over the 2022 Terra/Luna crash that prosecutors say wiped out about $40 billion for investors.

Overview

  • U.S. District Judge Paul A. Engelmayer imposed a 15-year term, exceeding prosecutors’ 12-year recommendation.
  • The judge said Kwon’s conduct led to roughly $40 billion in real losses suffered by investors.
  • Kwon previously pleaded guilty, admitting he concealed Terraform Labs’ financial problems, and he apologized to victims in court.
  • He was arrested in Montenegro in March 2023 for using forged passports and was extradited to the United States in late 2024.
  • Prosecutors say he will forfeit more than $19 million, and he still faces separate legal exposure in South Korea.