Victim Letters Influence Sentencing of Terraform Labs Founder Do Kwon
U.S. District Judge Paul Engelmayer sentenced Terraform Labs founder Do Kwon to 15 years in prison following the collapse of Terra/LUNA, an event estimated to have wiped out $40 billion and affected millions of potential victims. Ahead of the sentencing, 315 victim letters were submitted to the court, describing profound personal impacts including suicide, bankruptcy, and health declines linked to the collapse.
Judge Engelmayer reviewed all letters thoroughly, even staying up late to read them, though he noted that 30 letters had been filed late. The letters shared detailed examples of financial losses ranging from $200,000 to $500,000, and the severe consequences endured by victims such as health deterioration, family disruptions including divorces, and fatal incidents. These documents were publicly accessible through official court logs and were utilized to inform the sentencing decision, with some victims seeking restitution or a harsher penalty. The court also discussed the possibility of adjourning the hearing to mitigate the emotional impact of the letters, but Kwon's legal team opted not to adjourn.
