**15-Year Prison Sentence for Do Kwon: When Judge Paul Engelmayer Decides to Show "No Mercy" to the Cryptocurrency King**

Last Thursday in Manhattan, U.S. District Court Judge Paul Engelmayer delivered what is considered the harshest sentence in the history of cryptocurrency fraud cases: Do Kwon – founder of Terraform Labs – was sentenced to 15 years in prison. This sentence exceeded the expectations of federal prosecutors, who only recommended 12 years, and was nearly three times the lenient 5-year plea deal offered by Kwon’s legal team when they pleaded for the lightest possible sentence.

**Charges and the Depth of the $40 Billion Fraud**

Do Kwon was convicted for his direct role in the scheme to conceal the truth about the TerraUSD (UST) stablecoin algorithm. In maintaining the illusion of stability for this currency, he and his associates deceived thousands of investors, resulting in total losses of approximately $40 billion when the entire Terra/Luna ecosystem collapsed in 2022. This event was not only a financial failure but also one of the largest financial scams of the 21st century.

The court determined that Kwon’s defense argument – claiming he was merely "arrogant and desperate" – was insufficient to mitigate his charges. Judge Paul Engelmayer clearly was not convinced by these arguments.

**An Unusual Agreement: Public Contributions from Two Countries**

The most notable aspect of the sentence is the unique detention mechanism. Instead of serving the entire sentence in the United States, the judge decided to split the prison time: the first half in the U.S., the second half in South Korea – Do Kwon’s home country.

This solution was devised because Do Kwon is also facing serious legal charges in South Korea. This bilateral agreement sets a rare precedent, allowing both the U.S. and South Korea to prosecute and enforce penalties against the same individual. It is a way for the court to handle a complex situation involving a major criminal with ties to two nations.

**Beyond Prison: Financial Burden**

In addition to the 15-year sentence, Do Kwon faces an additional penalty of $19.3 million in fines. This amount is considered part of the effort to compensate the victims of the fraud.

**Do Kwon’s Legal Journey**

Before the sentencing in December, Do Kwon officially pleaded guilty in August this year to conspiracy charges related to securities and commodities fraud. This admission clearly did not help him reduce Judge Paul Engelmayer’s sentence, who was evidently determined to send a strong message to the cryptocurrency community about the consequences of large-scale fraud.

This sentence marks a turning point in the global fight against cryptocurrency fraud, demonstrating that law enforcement agencies are willing to impose heavy penalties on project leaders who cause billions of dollars in losses to investors.