"Kwon, known by some as "the cryptocurrency king," pleaded guilty in Manhattan federal court in August to fraud charges stemming from Terraform Labs' $40 billion crash. The company had touted its TerraUSD as a reliable "stablecoin"—a kind of currency typically pegged to stable assets to prevent drastic fluctuations in prices. But prosecutors say it was all an illusion that came crumbling down, devastating investors and triggering "a cascade of crises that swept through cryptocurrency markets.""
"While federal sentencing guidelines would recommend a prison term of about 25 years, prosecutors have asked the court to sentence Kwon to 12 years. They cited his guilty plea, the fact that he faces further prosecution in Korea, and that he has already served time in Montenegro while awaiting extradition. "Kwon's fraud was colossal in scope, permeating virtually every facet of Terraform's purported business," prosecutors wrote in a recent memo to the judge. "His rampant lies left a trail of financial destruction in their wake.""
Kwon is scheduled for sentencing for misleading investors who lost billions when Terraform Labs collapsed in 2022. He pleaded guilty in Manhattan federal court to fraud tied to the firm's $40 billion crash. Terraform promoted TerraUSD as a "stablecoin" meant to be pegged to stable assets, but prosecutors say that peg was illusory and caused massive investor losses and market turmoil. Kwon agreed to forfeit over $19 million. Prosecutors requested a 12-year sentence citing the plea, pending foreign prosecution, and time already served, while defense attorneys asked for no more than five years.
Read at Fast Company
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