Summary
A New York judge sentenced Do Kwon, co-founder of Terraform Labs, to 15 years in prison for misleading investors about TerraUSD and Luna, two digital currencies. The collapse of these currencies resulted in an estimated $40 billion loss.
Key Facts
- Do Kwon, a South Korean national, co-founded Terraform Labs.
- Terraform Labs developed TerraUSD and Luna digital currencies.
- The collapse of these currencies caused an estimated $40 billion loss.
- A New York judge sentenced Kwon to 15 years in prison for fraud.
- Kwon admitted misleading investors about TerraUSD's value stability.
- When TerraUSD's value fell in 2021, Kwon falsely claimed an algorithm restored its value.
- The fraud led to severe financial harm, according to the judge.
- Kwon pleaded guilty to conspiracy to defraud and wire fraud.
