Do Kwon Sentenced To 15 Years

Benzinga

Do Kwon was sentenced to 15 years for fraud tied to the TerraUSD/Luna collapse, which wiped out about $40B in 2022. Prosecutors said he misled investors about how UST held its $1 peg and secretly propped it up through a trading firm. He agreed to an $80M fine and a crypto ban under a $4.55B SEC deal and may seek transfer after serving half his U.S. term.

Transcript

00:00It's Benzinga bringing Wall Street to Main Street

00:02Duquan was sentenced Thursday to 15 years in prison after pleading guilty to fraud

00:07tied to the collapse of TerraUSD and Luna, which erased an estimated $40 billion in investor value

00:13in 2022, according to Reuters. U.S. District Judge Paul Engelmeyer said

00:19Quan repeatedly lied to investors about how TerraUSD maintained its $1 peg

00:23and called the scheme an epic generational fraud.

00:27Prosecutors said Quan secretly arranged for a trading firm to buy the token

00:31after it slipped below $1 in 2021, rather than disclosing the intervention.

00:36Quan agreed to pay an $80 million civil fine and accept a crypto ban

00:40under a $4.55 billion SEC settlement.

00:44He faces charges in South Korea and may seek transfer abroad after serving half of his U.S. sentence.

00:49For all things money, visit Benzinga.com.

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