Do Kwon received a 15-year prison sentence. A Manhattan federal court delivered the ruling last week. The Terraform Labs co-founder orchestrated a $40 billion fraud.
Judge Paul Engelmayer called it an epic fraud. The sentencing came after Kwon pleaded guilty. He admitted to conspiracy and wire fraud charges.
Will Korea Add Decades to Prison Time?
South Korean prosecutors are preparing additional charges. According to The Korea Times, Kwon could face trial at home. The Seoul Southern District Prosecutors' Office obtained an arrest warrant in September 2022.
A senior prosecutor revealed potential consequences. Korean courts could impose over 30 years. The charges involve Capital Markets Act violations.
Approximately 200,000 Korean investors suffered losses. The estimated damage totals 300 billion won or $204 million. Ten alleged accomplices have faced trial for three years.
As posted by Cryptonews on X, US prosecutors demanded 12 years initially. Judge Engelmayer increased it to 15 years. The court ordered $19 million forfeiture.
Transfer Program Opens Path to Korean Courts
US prosecutors agreed not to oppose a transfer request. Kwon can apply after serving half his sentence. The International Prisoner Transfer Program could facilitate his return.
According to Phantom Whale on X, speculation surrounds potential presidential intervention. Some wonder if Trump might issue pardons. The President has pardoned several crypto figures recently.
Kwon's defense team requested a five-year sentence. They argued Korean prosecution should reduce US punishment. Judge Engelmayer rejected this reasoning entirely.
The court stated one jurisdiction cannot speculate about another. Kwon's request to serve time in Korea was denied. His wife and four-year-old daughter live there.
TerraUSD and Luna collapsed in May 2022. The algorithmic stablecoin lost its dollar peg. Prosecutors discovered secret price manipulation schemes.
Terraform Labs contracted investment firms to prop up prices. This contradicted public claims about algorithmic stability. The fraud spanned from 2018 to 2022.
Kwon was arrested in Montenegro in March 2023. He attempted travel with forged documents. He spent nearly two years detained there.
