Do Kwon, co-founder of Terraform Labs, received a 15-year prison sentence for his involvement in a significant fraud that resulted in a $50 billion loss in the cryptocurrency market in May 2022. U.S. District Judge Paul Engelmeyer imposed the sentence after considering victim testimonies and Kwon's actions, including fleeing to multiple countries on false passports. Kwon's attempts to mislead investors, especially during the collapse of the TerraUSD (UST) stablecoin, were highlighted, with the judge condemning his behavior as “despicable.” Kwon pleaded guilty to conspiracy and wire fraud in August, admitting to defrauding purchasers of UST. The judge criticized both the prosecution’s recommended 12-year sentence and the defense’s five-year request, calling the latter “utterly unthinkable.” Engelmeyer expressed concerns about potential political influences on the plea agreement, referencing recent pardons issued by Donald Trump for crypto figures. Kwon’s social media presence, where he often dismissed critics, particularly annoyed the judge, who noted this behavior reflected Kwon's true character. During the sentencing, Kwon expressed remorse and mentioned his family, prompting some sympathy from the judge for his daughter. However, Engelmeyer emphasized the extensive impact of Kwon's actions on numerous victims, describing their letters as stark reminders of the devastation caused. Kwon's plea deal reduced the original nine-count indictment to two charges, exposing him to a maximum of 25 years, though the agreement included a recommendation for a shorter sentence. Questions about Kwon’s potential transfer back to South Korea, where he faces additional charges, raised further concerns in court.