Do Kwon, co-founder of Singapore-based Terraform Labs, has received a 15-year prison sentence from a New York judge.
Case Overview
The sentencing pertains to the collapse of two digital currencies, TerraUSD and Luna, which were developed by Terraform Labs. This event led to an estimated loss of $40 billion for investors.
Accusations and Admissions
Kwon, a South Korean national, admitted to misleading investors concerning TerraUSD. This digital asset was designed as a stablecoin, intended to maintain its value in alignment with the US dollar.
Broader Market Context
This legal action is among several cases initiated against prominent figures in the cryptocurrency industry within the United States. These proceedings followed a significant downturn in the digital asset market in 2022, which saw a decline in the value of digital tokens and the subsequent insolvency of multiple related companies.