Do Kwon, co-founder of Terraform Labs, was sentenced to 15 years in prison by the New York Court for his role in the stablecoin scam that caused approximately $50 billion in damages to the crypto ecosystem in 2022.

🔸 Kwon was sentenced to 15 years by Judge Paul Engelmeyer (SDNY) for charges of wire fraud, securities fraud, and commodities fraud. This is a harsher sentence than the 12 years proposed by prosecutors and the 5 years suggested by his lawyers.

🔸 Because Kwon pleaded guilty to conspiracy to commit commodities fraud, securities fraud, and wire fraud, along with a wire fraud charge related to fraudulent schemes at Terraform Labs.

🔸 He admitted to "knowing full well that he was participating in a scam and in fact deceived" the buyers of the TerraUSD (UST) stablecoin.

🔸 The collapse of Terraform Labs is considered the initial domino cause of the 2022 crypto crisis, leading to other major collapses such as FTX.

🔸 Thanks to the plea agreement, prosecutors agreed to reduce the indictment from 9 charges to 2 and support the transfer of Kwon to South Korea after he serves half of his sentence.#FedRateCutComing #GateNovTransparencyReportReleased #GateNovTransparencyReportReleased $BTC $ETH