Do Kwon’s Sentencing Faces Delay After Late Surge of Victim Statements

Terraform Labs co-founder Do Kwon will wait longer than expected to learn his prison sentence for the massive Terra/LUNA crypto collapse, which erased roughly $50 billion from the market in May 2022. His highly anticipated sentencing hearing stalled after U.S. District Judge Paul Engelmeyer sharply criticized federal prosecutors for submitting 315 victim impact statements just 24 hours before proceedings began.

During the lengthy hearing in the Southern District of New York, Engelmeyer expressed visible frustration, calling the government’s last-minute filing “a big deal” and “simply unacceptable.” He emphasized that such delays disrespect not only the defense but also the victims whose stories were included. Despite being offered a delay of up to six weeks, Kwon and his legal team declined, noting that many individuals had traveled internationally to attend. They also waived the right to appeal based on the late disclosure.

Victim testimonies became a central part of the prosecution’s narrative. Several individuals described how the Terra ecosystem’s implosion devastated their finances and personal lives. Chauncey St. John, who took the stand in person, recounted how the collapse crippled his charity, Angel Protocol, and wiped out the life savings of his in-laws. Though he expressed personal forgiveness toward Kwon, he detailed the emotional burden of the losses suffered by those he loved.

Others were far less conciliatory. One caller described losing a close friend to suicide following catastrophic financial losses. Another victim, Stanislav Trofinchuk, shared how the crash led to divorce, forced him to move back with his parents, and derailed his children’s education plans. A 58-year-old Russian woman described becoming homeless in Tbilisi after her $81,000 investment shrank to just $13, highlighting the profound human cost of the collapse.

Kwon, appearing noticeably thin, remained expressionless throughout the emotional testimony as victims detailed the devastating aftermath of what prosecutors describe as one of crypto’s most damaging frauds.