TerraUSD Creator Do Kwon Sentenced To 15 Years Over $40 Billion Crypto Collapse
(Thursday December 11, 2025 @10:30PM (BeauHD)
from the was-it-worth-it? dept.)
- Reference: 0180364745
- News link: https://yro.slashdot.org/story/25/12/11/2239200/terrausd-creator-do-kwon-sentenced-to-15-years-over-40-billion-crypto-collapse
- Source link:
An anonymous reader quotes a report from Reuters:
> Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that [1]lost an estimated $40 billion in 2022, was [2]sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy . Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.
>
> Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."
He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.
[1] https://news.slashdot.org/story/22/05/12/1534216/cryptocurrency-luna-now-almost-worthless-after-controversial-stablecoin-it-is-linked-to-loses-peg
[2] https://www.reuters.com/legal/government/terrausd-creator-do-kwon-be-sentenced-over-40-billion-crypto-collapse-2025-12-11/
> Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that [1]lost an estimated $40 billion in 2022, was [2]sentenced in New York federal court on Thursday to 15 years in prison for fraud and conspiracy . Kwon, 34, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, previously pleaded guilty and admitted to misleading investors about a coin that was supposed to maintain a steady price during periods of crypto market volatility.
>
> Kwon was one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies. [...] Kwon was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Prosecutors alleged that when TerraUSD slipped below its $1 peg in May 2021, Kwon told investors a computer algorithm known as "Terra Protocol" had restored the coin's value. Instead, Kwon arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price, according to charging documents.
"I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon said in court. "What I did was wrong."
He also faces charges in South Korea, and under his plea deal, prosecutors won't oppose his transfer abroad after he serves half of his U.S. sentence.
[1] https://news.slashdot.org/story/22/05/12/1534216/cryptocurrency-luna-now-almost-worthless-after-controversial-stablecoin-it-is-linked-to-loses-peg
[2] https://www.reuters.com/legal/government/terrausd-creator-do-kwon-be-sentenced-over-40-billion-crypto-collapse-2025-12-11/
Current Stage: The Great Grift (Score:2, Informative)
by Anonymous Coward
The grand master plan of crypto
The plan for all cryptocurrencies isn't what they want to make you think it is. It's more sinister than the egalitarian image the crypto boys portray for it.
After the 2008 financial meltdown, cryptocurrencies were born out of it, declared to be the means by which people could be freed from banks/governments, and promised to avoid any such future meltdowns from happening ever again.
But the crypto boys watched closely the result of that meltdown, and formulated their plan: c
Trump pardon? (Score:2)
"President Trump, do you realize how much I feel like you when they prosecuted you too in New York?"
Re: (Score:3)
If he still has enough to grease Donnie's palm a pardon won't be a problem.
Most corrupt administration in my lifetime.
Re: (Score:2)
Pardons have a set price of $1 million. [1]https://thehill.com/homenews/a... [thehill.com]
[1] https://thehill.com/homenews/administration/5319932-trump-pardon-paul-walczak/
Re: (Score:2)
Are Trump coin purchases able to be tracked? For any other admin in the past century, either party, this pardon is 0%, at least for a decade or so at a minimum but this one, this is easy, 1-in-5 I'm giving this this guy legit gets a pardon in the next 24 months. The President of the United States built himself a bribery system and we're just A-OK with that. Unreal.
And that fucknut Witkoff is Trump's partner in it and is also the guy we have negotiating with Putin while he also represents a number of Russ
Re: (Score:2)
The Dems should make a lot of noise about this pardon corruption.
It's easy to explain and easy to understand that pay-to-play pardons make a mockery of justice. I think this could cut through similar to the Epstein Files.
And while I am all in for Ukraine, I don't think that this administration's betrayal and, frankly treason, will resonate as much. Fog of war, and a country far, far away, will make this less front and center than these domestic affairs.
I think Epstein, affordability cost and pardon corrupti