"On Thursday, the 34 year-old was sentenced to 15 years in prison, after being charged with misleading investors and inflating the value of his company's cryptocurrencies known as Terra and Luna. At his sentencing hearing in New York, the judge chastised Kwon, suggesting he had succumbed to the worst elements of an industry known for get-rich-quick swindles. "You have been bitten by the crypto bug and I don't think that's changed."
"Kwon was charged with committing wire fraud and conspiring to commit securities fraud and commodities fraud, according to a statement by the Department of Justice. After his company went bankrupt in 2022, Kwon was on the run for months. He fled South Korea and later Singapore after he was wanted by both the United States and South Korea. He was arrested in March 2023 in Montenegro after he was found in possession of a fake Costa Rican passport."
Do Kwon, 34, received a 15-year prison sentence for misleading investors and inflating the value of Terra and Luna. The 2022 collapse of TerraUSD and Luna caused massive investor losses. Federal charges included wire fraud and conspiracy to commit securities and commodities fraud. Kwon fled South Korea and Singapore after his company declared bankruptcy, was arrested in Montenegro in March 2023 with a fake Costa Rican passport, and was later extradited to the United States. A 2024 SEC suit found Terraform and Kwon liable for civil fraud, and a jury concluded they misled investors about using Chai and an algorithmic dollar peg.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]