Terraform Labs co-founder Do Kwon has been sentenced to 15 years in U.S. federal prison for orchestrating a massive fraud that wiped out around $50 billion from the crypto market during Terra’s 2022 collapse. The sentence—issued by Judge Paul Engelmeyer of the Southern District of New York—is harsher than both the prosecution’s 12-year recommendation and the defense’s request for five years.

The judge cited the enormous financial damage, the large number of victims, Kwon’s attempted escape using false passports, and his deceptive public behavior during UST’s depeg as reasons for the severe sentence. Engelmeyer called Kwon’s conduct “despicable,” criticizing both his lies to investors and his mockery of critics on social media.

Kwon pleaded guilty in August to wire fraud, securities fraud, and commodities fraud. His plea deal reduced nine original charges to two and lowered his potential maximum sentence from 135 years to 25. After serving half of his sentence, Kwon may apply for transfer to South Korea, where he faces additional charges.

Judge Engelmeyer warned that the devastation suffered by victims far outweighed the leniency requested by the defense and questioned why prosecutors had recommended just 12 years. Victim impact statements described severe financial and personal harm, while some letters supporting Kwon resembled “cult-like” devotion, according to the judge.

Kwon’s downfall marked the first major collapse in the 2022 crypto contagion, leading to broader failures including FTX and Celsius. Despite expressing remorse and breaking down when mentioning his family, the court emphasized accountability for the widespread damage caused.