According to US media reports, South Korean cryptocurrency tycoon Do Kwon was sentenced to 15 years in prison on the 11th for fraud related to the collapse of his own company. The collapse caused investors to lose 40 billion US dollars (164.334 billion Malaysian ringgit) and shook the global cryptocurrency market.
AFP reported that Do Kwon, who was arrested under an international warrant spanning Asia and Europe, pleaded guilty in a New York court in August this year. The court delivered its verdict on the 11th.
Do Kwon still faces fraud charges in South Korea.
The 34-year-old Do Kwon founded Terraform Labs, which once launched the cryptocurrency TerraUSD and promoted it as a "stablecoin," claiming TerraUSD's price was pegged to stable assets like the US dollar to avoid sharp fluctuations.
Do Kwon successfully marketed his currency as the next big thing in crypto, attracting billions of dollars in investment and sparking a worldwide craze.
●Formerly on Forbes Asia’s 30 Under 30 List
He was highly praised in the Korean media and dubbed a "genius," with thousands of private investors flocking to invest funds. In 2019, Do Kwon was even named to Forbes Asia’s 30 Under 30 list.
Despite billions pouring in, TerraUSD and its sister coin Luna entered a death spiral in May 2022.
Do Kwon left South Korea before the crash and was on the run for several months.
He was arrested in March 2023 at Podgorica Airport in Montenegro, as he was about to board a flight to Dubai, carrying a forged Costa Rican passport.
Last year, Do Kwon was extradited from Montenegro to the United States.