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Former crypto star Do Kwon was sentenced Thursday to 15 years in prison after the collapse of his Terra ecosystem revealed a massive fraud that wiped out about $40 billion.

For many everyday investors, the ruling marked the first real step toward justice after losing their savings in what prosecutors called one of the biggest financial scams in modern history.

US District Judge Paul A. Engelmayer delivered the sentence in Manhattan federal court, saying the government's request for 12 years was too light and the defense's push for five years was "unthinkable."

According to CNN, he reminded Kwon that the damage he caused was not theoretical. "Your offense caused real people to lose real money," the judge said, calling the scheme a "fraud on an epic, generational scale."

Kwon, 34, once celebrated as a rising figure in the crypto world, apologized as he listened to victims describe how their lives collapsed after Terra's downfall. Some said they lost retirement savings, charitable funds, and college money.

One man said the financial pressure became so severe that he even thought about ending his life. Another victim explained that his family's $190,000 investment shrank to just $13,000 in two weeks.

Do Kwon Fled on Fake Passport

The crash stemmed from TerraUSD, a "stablecoin" that Kwon and his company, Terraform Labs, claimed would keep a steady $1 value, NBC News reported. Prosecutors said this promise was built on lies.

When TerraUSD slipped below its peg, Kwon secretly used outside cash to make it appear stable again.

That false confidence encouraged even more people to invest, deepening the eventual losses when the system finally crumbled.

After the collapse, Kwon tried to restart Terraform Labs in Singapore and later fled to the Balkans using a fake passport.

He was arrested in Montenegro in March 2023 and spent 17 months in jail there before being extradited to the United States. As part of his plea deal, he will forfeit more than $19 million.

Kwon said he has spent years thinking about what he should have done differently. Speaking quietly in court, he told the judge, "Hearing from victims was harrowing and reminded me again of the great losses that I have caused."

Prosecutors read excerpts from more than 300 victim letters. One young investor wrote that losing almost $11,400 while trying to finish college was "terrifying," adding that what happened was "not an accident" but "deception."

Assistant US Attorney Sarah Mortazavi said Kwon built an "illusion of resilience" that hid the system's failures. "This was fraud executed with arrogance and total disregard for people," she said.