Name: Entrepreneur Do Kwon gets 15 years in jail over epic crypto fraud
Uploaded: 2025-12-12T14:56:29.204Z
Duration: 58 s
Description: TerraUSD and Luna creator Do Kwon has been sentenced to 15 years in prison for orchestrating a massive crypto fraud. The collapse of his tokens wiped out $40 billion in value and devastated thousands of investors worldwide.

TerraUSD and Luna creator Do Kwon has been sentenced to 15 years in prison for orchestrating a massive crypto fraud. The collapse of his tokens wiped out $40 billion in value and devastated thousands of investors worldwide.

New York

South Korean crypto entrepreneur Do Kwon has been sentenced to 15 years in prison by a U.S. court for his involvement in the $40 billion collapse of the TerraUSD and Luna tokens. Judge Paul Engelmeyer stated that Kwon misled investors, many of whom entrusted him with their life savings, and described the fraud as being on an 'epic generational scale.'

Kwon admitted to misleading investors about the stability of TerraUSD and secretly using a trading firm to prop up its value while publicly claiming an algorithm maintained its price. He pleaded guilty to conspiracy to defraud and wire fraud, apologized in court, and faces additional charges in South Korea. Under his plea deal, Kwon may apply for transfer abroad after serving half of his U.S. sentence.

Entrepreneur Do Kwon gets 15 years in jail over 'epic' crypto fraud

South Korean crypto entrepreneur Deok Kwon was sentenced to 15 years in jail on Thursday. That's over the $40 billion collapse of the TerraUSD and Luna tokens that he created. U.S. District Judge Paul Engelmeyer said Kwon misled everyday investors who trusted him with their life savings, calling the scheme fraud, quote, on an epic generational scale. The 34-year-old Kwon admitted to misleading investors over TerraUSD, a so-called stablecoin meant to stay at $1 in value. When it started to lose value in 2021, he secretly used a trading firm to prop up its price while telling investors an algorithm fixed it. Prosecutors said Kwon's fraud triggered a cascade of crises in the crypto market. He pleaded guilty to conspiracy to defraud and wire fraud, and apologized in court. Kwon also faces charges in South Korea. As part of his plea deal, he may apply for transfer abroad after serving half his U.S. sentence.

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