(qlmbusinessnews.com . Fri 12th Dec, 2025) London, UK —
From Crypto Visionary to Convict: The Rise and Fall of Do Kwon and His $40 Billion Stablecoin Scam
A former cryptocurrency magnate, responsible for creating two digital currencies that ultimately failed, causing an estimated loss of $40bn (£29.9bn), has been incarcerated for fifteen years by a judge in New York, following his conviction for committing a fraud described as “epic”.
Do Kwon, hailing from South Korea, was one of the founding members of Terraform Labs based in Singapore. The firm was the brains behind the development of the digital currencies TerraUSD and Luna.
Kwon conceded to having deceived investors regarding TerraUSD, a particular variety of stablecoin that was envisaged to retain its value in parallel to the US dollar.
He faces the consequences amid a wave of legal actions against several cryptocurrency executives in the US, following a significant downturn in the value of digital tokens in 2022, which subsequently led to the downfall of numerous firms.
US District Judge Paul A Engelmayer, who delivered the sentencing, emphasized that Kwon had persistently misled investors who had placed their trust and funds in his venture.
During the sentencing hearing in Manhattan on Thursday, Judge Engelmayer remarked, “This was a fraud on an epic, generational scale. In the annals of federal prosecutions, there are few frauds that have inflicted as much damage as yours.”
Kwon, who in August pleaded guilty to charges of conspiracy to defraud and wire fraud, conveyed his regret to the court, stating, “I have spent almost every waking moment of the last few years pondering over what I could have done differently and what I can do now to amend the situation.”
The prosecution argued that in May 2021, when TerraUSD's value dipped below the $1 mark, Kwon falsely assured investors that the stablecoin's value had been restored by a computer algorithm. Contrary to his claims, court documents revealed that Kwon had covertly instructed a trading firm to purchase millions of dollars of the coin to artificially inflate its value.
This News Story is brought to you by QLM Business News, your Digital Media Channel.
Visit QLM businessnews.com for more business news stories. Also follow us on Facebook, X, and Youtube.
To help QLM Business News bring you more news stories like this, please like, share, and subscribe.
Unlock unparalleled business growth and effortlessly attract a stream of new customers through QLM Business News Sponsored Advertising. Elevate your brand's presence and captivate your target audience with precision. Visit QLMbusinessnews.com and click on “Advertise” to harness the power of strategic advertising. Don't miss this unparalleled opportunity to propel your business to new heights of success!
Disclaimer: All images presented herein are intended solely for illustrative purposes and may not accurately depict the true likeness of the subjects, objects, or individuals referenced in the accompanying news stories.
