Do Kwon Gets 15 Years for $40 Billion Crypto Collapse
Do Kwon, who was behind two digital currencies that eventually collapsed in a $40 billion debacle, was sentenced to 15 years in prison on Thursday. During the sentencing, a judge referred to Kwon’s work at Terraform Labs as an “epic fraud” on a “generational scale” that few other previous frauds have reached.
South Korean entrepreneurs Daniel Shin and Do Kwon originally introduced the Terra blockchain as a platform for stablecoins tied to fiat currencies in 2018. It began with TerraKRW, pegged to the Korean won, but by 2020, the project shifted its focus to TerraUSD (UST), an algorithmic stablecoin designed to hold a $1 value backed by LUNA (the native cryptocurrency of the Terra blockchain) rather than…
