Crypto King Do Kwon Faces Sentencing for $40 Billion Fraud

Do Kwon, the South Korean cryptocurrency entrepreneur responsible for the TerraUSD and Luna digital currencies, faces sentencing today in a New York federal court. These digital assets experienced an estimated $40 billion loss in value during 2022. Kwon previously admitted to misleading investors about a coin designed to maintain price stability, a revelation that led to his conviction for fraud and conspiracy.

Prosecutors are advocating for a minimum of 12 years in prison, citing the catastrophic billions in losses and the subsequent market crises triggered by Terra's collapse. Conversely, Kwon's legal team has requested a sentence of no more than five years, with the aim of enabling his return to South Korea to address pending criminal charges there. Kwon pleaded guilty in August to conspiracy to defraud and wire fraud, apologizing for his actions.

Kwon has agreed to pay an $80 million civil fine and is banned from crypto transactions as part of a larger $4.55 billion settlement with the U.S. Securities and Exchange Commission. He also faces separate charges in South Korea. His U.S. plea deal includes a provision where prosecutors will not oppose his potential transfer abroad after serving half of his U.S. sentence.