Former crypto entrepreneur Do Kwon has been sentenced to 15 years in prison by a New York judge. The sentence is connected to the collapse of two digital currencies, TerraUSD and Luna, which resulted in an estimated $40 billion ($29.9 billion) in investor losses.
Kwon, a South Korean national, was a co-founder of Singapore-based Terraform Labs. This entity was responsible for the development of both the TerraUSD and Luna digital coins.
He had previously acknowledged that he provided misleading information to investors concerning TerraUSD. This digital asset was classified as a stablecoin, designed with the objective of maintaining its value in relation to the US dollar.
The case involving Kwon is part of a series of charges brought against cryptocurrency industry figures in the US. These legal actions followed a substantial decline in the value of digital tokens during 2022, a period that coincided with the insolvency of several cryptocurrency companies.