Terra Founder Do Kwon Sentenced to 15 Years in Prison
A New York court has sentenced Do Kwon, founder of the collapsed Terra crypto network, to 15 years in prison for fraud.
A district court in New York sentenced Do Kwon, founder of the collapsed Terra crypto network, to 15 years in prison on December 11. Presiding Judge Paul Engelmayer described the case as an exceptionally serious fraud involving systematic misrepresentations to investors.
Kwon pleaded guilty in August to two counts of fraud and waived his right to trial. The indictment originally included nine charges. According to the court, particularly egregious was Kwon's public assurance of the stability of the algorithmic stablecoin TerraUSD and promises of approximately 20 percent returns through the Anchor Protocol. These statements induced many investors to put funds into the Terra ecosystem.
The Terra network collapsed in May 2022, causing billions of dollars in losses. The verdict is viewed in the industry as an important signal that those responsible for crypto projects can be held accountable for fraudulent practices. [1]
Sources
- [1]btc-echo.de
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