Do Kwon just got sentenced to 15 years for a $40 billion fraud while SBF got 25 years for an $11 billion fraud and the reason why is actually really intresting.

Kwons Terra-Luna collapse caused nearly four times more financial damage than FTX but he got 10 years less prison time. The judge called it fraud on an epic generational scale with hundreds of thousands of victims worldwide. So why the lighter sentence?

The biggest difference was how they handled their cases. Kwon pleaded guilty in August and took responsibility. He wrote to the court saying he was responsible for the pain people went through and that he led the community astray in his hubris. He listened to hundreds of victim impact statements and apologized directly.

SBF on the other hand went to trial and maintained his innocence throughout. He claimed FTX just had a liquidity crisis not actual fraud. The jury convicted him in about four hours. Judge Kaplan found that SBF committed perjury multiple times on the stand and called his testimony some of the most evasive he’d seen in decades. SBF also tried to tamper with witnesses before trial by messaging FTXs former general counsel.

Another huge factor is Kwon faces up to 40 additional years in South Korea after he finishes his US sentence. The judge explicitly considered this when deciding on 15 years. SBF doesnt have any foreign charges waiting so his 25 years is basically it unless his appeal succeeds.

The takeaway here is pretty clear – cooperation and actual remorse can massively reduce your sentence even if your fraud was way bigger. Going to trial and lying under oath will get you hammered regardless of the dollar amounts involved.