A prominent figure in the cryptocurrency industry has been sentenced to 15 years in a U.S. prison following his conviction on fraud charges related to the collapse of his digital currency ventures. The sentence, handed down in a New York federal court, exceeds the term requested by prosecutors.
The defendant, a 34-year-old entrepreneur from South Korea, pleaded guilty to charges of conspiracy to commit fraud and wire fraud. His company, based in Singapore, was responsible for creating two digital tokens that lost an estimated $40 billion in value three years ago, an event that contributed to a severe downturn across the cryptocurrency sector.
In court, the presiding judge described the scheme as “a fraud of epic generational scale,” imposing a stricter penalty than the 12 years sought by the prosecution. The judge noted that a lesser sentence would be inappropriate given the extensive financial harm inflicted on victims worldwide.
Authorities argued that the fraudulent activities not only devastated individual investors but also played a role in triggering a broader market crisis in 2022, which saw the failure of several major industry firms.
During the sentencing hearing, the defendant accepted personal responsibility, stating he had spent years reflecting on his actions and how to make amends. His legal team had sought a maximum of five years, contending his actions were aimed at stabilizing his company’s flagship digital currency rather than enriching himself personally—a claim the judge dismissed as unreasonable.
As part of his plea agreement, the individual has agreed to forfeit over $19 million in assets allegedly obtained through the fraud. He has been in U.S. custody since being extradited from Montenegro, where he was previously detained on separate charges.
Prosecutors indicated they would support transferring him to serve part of his sentence in South Korea, where he faces additional charges, provided he complies with the terms of his agreement. The court noted that determining restitution for the thousands of affected investors would be exceptionally complex, and as such, prosecutors are not pursuing individual compensation claims.
The judge revealed receiving hundreds of victim impact statements from individuals across the globe, many reporting the loss of life savings, retirement funds, and college tuition money. Despite the guilty plea, the court observed that some investors remain steadfast supporters, with their letters compared by the judge to the writings of devoted followers.
The case centers on allegations that when the value of one token began to fall below its intended price, the founder falsely claimed an automated system had corrected the issue. Prosecutors assert he instead secretly orchestrated multi-million dollar purchases to artificially inflate the price, misleading both retail and institutional investors. This activity allegedly helped drive the linked cryptocurrency to a peak valuation of $50 billion before its collapse.
This sentencing marks one of the most significant legal outcomes in a series of prosecutions targeting high-profile cryptocurrency executives following the 2022 market crash.