Once a legendary figure in the crypto world, now reduced to a prisoner. Recently, seeing Do Kwon’s sentencing outcome really moved me. The co-founder of Terraform Labs was sentenced by a U.S. court to 15 years in prison at the end of last year for large-scale fraud. The 2022 collapse of the Terra ecosystem wiped out about $50 billion from the global crypto market in just three days, leaving countless investors with nothing to show for it.

What’s most interesting is that the 15-year term handed down by Judge Paul Engelmeyer was not only far higher than the 5 years suggested by the defense attorneys, but even heavier than the 12 years the prosecution asked for. During the hour-long trial, the judge laid out in detail Do Kwon’s lies, denouncing his conduct during the de-pegging of the stablecoin UST as “despicable and shameless.” At the time, he publicly urged retail investors to hold their ground, while privately secretly selling off assets to flee. Such a double standard is truly outrageous.

In court, the judge also cited Do Kwon’s past rants on social media—especially his posts on X mocking his critics, saying: “I don’t debate with poor people. Sorry, I don’t have any change on me to give her.” The judge used a historian’s quote to chastise him, saying that the essence of power lies in exposing human nature, and that moment exposed his true face. Can you imagine it? Once-arrogant remarks have now all become evidence presented in court.

Even more dramatic, at the sentencing hearing, Do Kwon changed from his previous arrogance and broke down in tears when mentioning his wife in South Korea and his 4-year-old daughter. Although the judge expressed sympathy that his daughter would grow up without her father, he showed no leniency toward Do Kwon himself. He pointed to piles of victim letters and said that reading these letters was like taking a human-destruction journey caused by Do Kwon. Those letters described how investors lost their lifetime savings and how families were torn apart in an instant.

It’s worth noting that the judge repeatedly said he was puzzled by the relatively light sentence recommended by the prosecution, even questioning whether there was “political interference” behind the plea agreement. The prosecution, in turn, issued a statement blasting Do Kwon for meticulously planning the scam, misleading investors for personal gain, and even launching deceptive PR activities to cover up the fraud.

Under Do Kwon’s leadership, Terraform Labs became the first domino to fall during the 2022 crypto crash, triggering a chain reaction of liquidations and bankruptcies. That ripple effect ultimately reached the collapse of FTX. Looking at how this series of events unfolded, you realize it’s not just a matter of simple market risk, but a systemic collapse of trust. Under the plea agreement, Do Kwon must serve at least half of his sentence in the U.S. before he is eligible to apply for extradition back to South Korea to face subsequent charges. In a sense, the verdict of the entire case also reflects the judiciary’s zero-tolerance stance toward fraud in the crypto market.