Onetime cryptocurrency mogul Do Kwon was sentenced Thursday to 15 years in prison after a $40 billion crash revealed his crypto ecosystem to be a fraud. Victims said the 34-year-old financial technology whiz weaponized their trust to convince them that the investment — secretly propped up by cash infusions — was safe.

Kwon, a Stanford graduate known by some as “the cryptocurrency king,” apologized after listening as victims — one in court and others by telephone — described the scam’s toll: wiping out nest eggs, depleting charities and wrecking lives. One told the judge in a letter that he contemplated suicide after his father lost his retirement money in the scheme.

Judge Paul A. Engelmayer said at a daylong sentencing hearing in Manhattan federal court that the government’s recommendation of 12 years in prison was “unreasonably lenient” and that the defense’s request for five years was “utterly unthinkable and wildly unreasonable.” Kwon faced a maximum sentence of 25 years in prison.

“Your offense caused real people to lose $40 billion in real money, not some paper loss,” Engelmayer told Kwon, who sat at the defense table in a yellow jail suit. The judge called it “a fraud on an epic, generational scale” and said Kwon had an “almost mystical hold” on investors and caused incalculable “human wreckage.”

Kwon pleaded guilty in August to fraud charges stemming from the collapse of Terraform Labs, the Singapore-based firm he co-founded in 2018. The loss exceeded the combined losses from FTX founder Sam Bankman-Fried and OneCoin co-founder Karl Sebastian Greenwood’s frauds, prosecutors said. Engelmayer estimated there may have been a million victims.

Terraform Labs had touted its TerraUSD as a reliable “stablecoin” — a kind of currency typically pegged to stable assets to prevent drastic fluctuations in prices. But prosecutors say it was an illusion backed by outside cash infusions that came crumbling down after it plunged far below its $1 peg. The crash devastated investors in TerraUSD and its floating sister currency, Luna, triggering “a cascade of crises that swept through cryptocurrency markets.”

Kwon tried to rebuild Terraform Labs in Singapore before fleeing to the Balkans on a false passport, prosecutors said. He’s been locked up since his March 2023 arrest in Montenegro. He was credited for 17 months he spent in jail there before being extradited to the U.S.

Kwon agreed to forfeit over $19 million as part of his plea deal. His lawyers argued his conduct stemmed not from greed, but hubris and desperation. Engelmayer rejected his request to serve his sentence in his native South Korea, where he also faces prosecution and where his wife and 4-year-old daughter live.

“I have spent almost every waking moment of the last few years thinking of what I could have done different and what I can do now to make things right,” Kwon told Engelmayer. Hearing from victims, he said, was “harrowing and reminded me again of the great losses that I have caused.”

One victim, speaking by telephone, said his wife divorced him, his sons had to skip college, and he had to move back to Croatia to live with his parents after TerraUSD’s crash evaporated his family’s life savings. Another said he has to “live with the guilt” of persuading his in-laws and hundreds of nonprofit organizations to invest.

Stanislav Trofimchuk said his family’s investment plummeted from $190,000 to $13,000 — “17 years of our life, gone” during what he described as “two weeks of sheer terror.”

Chauncey St. John, speaking in court, said some nonprofits he worked with lost more than $2 million and a church group lost about $900,000. He and his wife are saddled with debt and his in-laws have been forced to work well past their planned retirement, he said.

Nevertheless, St. John said, he forgives Kwon and “I pray to God to have mercy on his soul.”

A prosecutor read excerpts from some of more than 300 letters submitted by victims, including a person identified only by initials who lost nearly $11,400 while juggling bills and trying to complete college. Kwon had made Terra seem like a safe place to stash savings, the person said.

“To some that is just a number on a page, but to me it was years of effort,” the person wrote. “Watching it evaporate, literally overnight, was one of the most terrifying experiences of my life.”

“What happened was not an accident. It was not a market event. It was deception,” the person added, imploring the judge to “consider the human cost of this tragedy.”

Kwon created an “illusion of resilience while covering up systemic failure,” Assistant U.S. Attorney Sarah Mortazavi told Engelmayer. “This was fraud executed with arrogance, manipulation and total disregard for people.”

A top European Union official on Monday warned the United States against interfering in Europe’s affairs and said only European citizens can decide which parties should govern them.

European Council President Antonio Costa’s remarks came in reaction to the Trump administration’s new national security strategy, which was published on Friday and paints European allies as weak while offering tacit support to far-right political parties.

It’s “good” that the strategy depicts European countries as an ally, but “allies don’t threaten to interfere in the domestic political choices of their allies,” Costa said.

“What we can’t accept is the threat of interference in European political life. The United States cannot replace European citizens in choosing what the good or the bad parties are,” he said in Paris at the Jacques Delors Institute, a think tank.

Fabian Zuleeg, chief executive at the European Policy Centre think tank, said that stridently nationalist parties in Europe will be emboldened by the strategy document and “will intensify efforts to hollow out the EU from within.”

“Pro-European liberal forces need to finally wake up: Trump’s America is not an ally but an adversary to Europe’s freedoms and fundamental values. His objective is to replace our democratic system with the illiberal populism now entrenched in the U.S.,” Zuleeg said.

The strategy was also critical of European free speech and migration policy. U.S. allies in Europe face the “prospect of civilizational erasure,” the document said, raising doubts about their long-term reliability as American partners.

But Costa, who chairs summits of the 27 national EU leaders, said Europe’s “history has taught us that you can’t have freedom of speech without freedom of information.”

The former Portuguese prime minister also warned “there will never be free speech if the freedom of information of citizens is sacrificed for the aims of the tech oligarchs in the United States.”

Speaking to reporters in Berlin, German government spokesperson Sebastian Hille underlined that “Europe and the U.S. are historically, economically and culturally linked, and remain close partners.”

“But we reject the partly critical tones against the EU,” he said. “Political freedoms, including the right to freedom of expression, belong to the fundamental values of the European Union. We view accusations regarding this more as ideology than strategy.”

The security strategy is the administration’s first since President Donald Trump returned to office in January. It breaks starkly from the course set by President Joe Biden’s Democratic administration, which sought to reinvigorate U.S. alliances.

It comes as the U.S. seeks an end to Russia’s nearly 4-year-old war in Ukraine, a goal that the national security strategy says is in America’s vital interests.

But the text makes clear that the U.S. wants to improve its relationship with Russia after years of Moscow being treated as a global pariah and ending the war is a core U.S. interest to “reestablish strategic stability with Russia.”

Kremlin spokesman Dmitry Peskov has said the document “absolutely corresponds to our vision.” Over the course of the war, Russia has worked to drive a wedge between NATO allies, particularly between the U.S. and Ukraine’s main backers in Europe.

“If we read closely the part about Ukraine, we can understand why Moscow shares this vision,” Costa said. “The objective in this strategy is not a fair and durable peace. It’s only (about) the end of hostilities, and the stability of relations with Russia.”

“Everyone wants stable relations with Russia,” he added, but “we can’t have stable relations with Russia when Russia remains a threat to our security.”

Top EU officials and intelligence officers have warned Russia could be in a position to launch an attack elsewhere in Europe in three to five years should it defeat Ukraine.

Former Honduras President Juan Orlando Hernández, sentenced last year to 45 years in prison for his role in helping drug traffickers move hundreds of tons of cocaine to the United States, was released from prison following a pardon from President Donald Trump, his wife announced Tuesday.

The U.S. Bureau of Prisons inmate website showed that Hernández was released from U.S. Penitentiary, Hazelton in West Virginia on Monday and a spokesperson for the bureau on Tuesday confirmed his release.

His wife Ana García thanked Trump for pardoning Hernández via the social platform X early Tuesday.

“After almost four years of pain, of waiting and difficult challenges, my husband Juan Orlando Hernández RETURNED to being a free man, thanks to the presidential pardon granted by President Donald Trump,” García’s post said. She included a picture of the U.S. Bureau of Prisons listing for Hernández indicating his release.

On Sunday, Trump was asked about why he pardoned Hernandez by reporters traveling with him on Air Force One.

“I was asked by Honduras, many of the people of Honduras,” Trump said.

“The people of Honduras really thought he was set up, and it was a terrible thing,” he said.

“They basically said he was a drug dealer because he was the president of the country. And they said it was a Biden administration set-up. And I looked at the facts and I agreed with them.”

Hernández was arrested at the request of the United States in February 2022, weeks after handing over power to current President Xiomara Castro.

Two years later, he was sentenced to 45 years in prison in a New York federal courtroom for taking bribes from drug traffickers so they could safely move some 400 tons of cocaine north through Honduras to the United States.

Hernández maintained throughout that he was innocent and the victim of revenge by drug traffickers he had helped extradite to the United States.

During his sentencing in New York, federal Judge P. Kevin Castel said the punishment should serve as a warning to “well educated, well dressed” individuals who gain power and think their status insulates them from justice when they do wrong.

Hernández portrayed himself as a hero of the anti-drug trafficking movement who teamed up with American authorities under three U.S. presidential administrations to reduce drug imports.

But the judge said trial evidence proved the opposite and that Hernández employed “considerable acting skills” to make it seem that he was an anti-drug trafficking crusader while he deployed his nation’s police and military, when necessary, to protect the drug trade.

Hernández is not guaranteed a quick return to Honduras.

Immediately after Trump announced his intention to pardon Hernández, Honduras Attorney General Johel Zelaya said via X that his office was obligated to seek justice and put an end to impunity.

He did not specify what charges Hernández could face in Honduras. There were various corruption-related investigations of his administration across two terms in office that did not lead to charges against him. President Xiomara Castro, who had Hernández arrested and extradited him to the U.S., will remain in office until January.

The pardon promised by Trump days before Honduras’ presidential election injected a new element into the contest that some said helped the candidate from his National Party Nasry Asfura, one of the leaders as the vote count proceeded Tuesday.

The Supreme Court is meeting in private Friday with a key issue on its agenda — President Donald Trump ’s birthright citizenship order declaring that children born to parents who are in the United States illegally or temporarily are not American citizens.

The justices could say as soon as Monday whether they will hear Trump’s appeal of lower court rulings that have uniformly struck down the citizenship restrictions. They have not taken effect anywhere in the United States.

If the court steps in now, the case would be argued in the spring, with a definitive ruling expected by early summer.

The birthright citizenship order, which Trump signed on the first day of his second term in the White House, is part of his administration’s broad immigration crackdown. Other actions include immigration enforcement surges in several cities and the first peacetime invocation of the 18th century Alien Enemies Act.

The administration is facing multiple court challenges, and the high court has sent mixed signals in emergency orders it has issued. The justices effectively stopped the use of the Alien Enemies Act to rapidly deport alleged Venezuelan gang members without court hearings, while they allowed the resumption of sweeping immigration stops in the Los Angeles area after a lower court blocked the practice of stopping people solely based on their race, language, job or location.

The justices also are weighing the administration’s emergency appeal to be allowed to deploy National Guard troops in the Chicago area for immigration enforcement actions. A lower court has indefinitely prevented the deployment.

Birthright citizenship is the first Trump immigration-related policy to reach the court for a final ruling. Trump’s order would upend more than 125 years of understanding that the Constitution’s 14th Amendment confers citizenship on everyone born on American soil, with narrow exceptions for the children of foreign diplomats and those born to a foreign occupying force.

In a series of decisions, lower courts have struck down the executive order as unconstitutional, or likely so, even after a Supreme Court ruling in late June that limited judges’ use of nationwide injunctions.

While the Supreme Court curbed the use of nationwide injunctions, it did not rule out other court orders that could have nationwide effects, including in class-action lawsuits and those brought by states. The justices did not decide at that time whether the underlying citizenship order is constitutional.

But every lower court that has looked at the issue has concluded that Trump’s order violates or most likely violates the 14th Amendment, which was intended to ensure that Black people, including former slaves, had citizenship.

The administration is appealing two cases.

The U.S. Court of Appeals for the 9th Circuit in San Francisco ruled in July that a group of states that sued over the order needed a nationwide injunction to prevent the problems that would be caused by birthright citizenship being in effect in some states and not others.

A federal judge on Thursday ordered the Trump administration to end its monthslong deployment of National Guard troops to help police the nation’s capital.

U.S. District Judge Jia Cobb concluded that President Donald Trump’s military takeover in Washington, D.C., illegally intrudes on local officials’ authority to direct law enforcement in the district. She put her order on hold for 21 days to allow for an appeal, however.

District of Columbia Attorney General Brian Schwalb sued to challenge the Guard deployments. He asked the judge to bar the White House from deploying Guard troops without the mayor’s consent while the lawsuit plays out.

Dozens of states took sides in Schwalb’s lawsuit, with their support falling along party lines.

Cobb found that while the president does have authority to protect federal functioning and property, he can’t unilaterally deploy the D.C. National Guard to help with crime control as he sees fit or call in troops from other states.

After her ruling, Schwalb called for troops to be sent home. “Normalizing the use of military troops for domestic law enforcement sets a dangerous precedent, where the President can disregard states’ independence and deploy troops wherever and whenever he wants — with no check on his military power,” Schwalb said.

The White House, though, stood by the deployment.

“President Trump is well within his lawful authority to deploy the National Guard in Washington, D.C., to protect federal assets and assist law enforcement with specific tasks,” said spokeswoman Abigail Jackson. “This lawsuit is nothing more than another attempt — at the detriment of DC residents — to undermine the President’s highly successful operations to stop violent crime in DC.”

In August, President Donald Trump issued an executive order declaring a crime emergency in Washington. Within a month, more than 2,300 National Guard troops from eight states and the district were patrolling the city under the command of the Secretary of the Army. Trump also deployed hundreds of federal agents to assist in patrols.

The administration has also deployed Guard troops to Los Angeles and tried to send troops into Chicago and Portland, Oregon, prompting other court challenges. A federal appeals court allowed the Los Angeles deployment, and the administration is appealing a judge’s decision in Portland that found the president did not have the authority to call up or deploy National Guard troops there.

The Supreme Court is weighing the administration’s emergency appeal to be allowed to deploy National Guard troops in the Chicago area in support of an immigration crackdown. A lower court has indefinitely prevented the deployment.

In Washington, It’s unclear how long the deployments will last, but attorneys from Schwalb’s office said Guard troops are likely to remain in the city through at least next summer.

The acting chief of the Federal Emergency Management Agency left his job Monday after just six months, according to the Department of Homeland Security, the latest disruption in a year of mass staff departures, program cuts and policy upheaval at the agency charged with managing federal disaster response.

David Richardson, who in his brief term remained largely out of public sight, is leaving the post after he faced a wave of criticism for his handling of the deadly Texas floods earlier this year. He replaced previous acting head Cameron Hamilton in May.

DHS did not comment on the details of Richardson’s departure, but a FEMA employee familiar with the matter told The Associated Press that Richardson resigned. The employee spoke on condition of anonymity because they weren’t authorized to discuss the changes with the media.

The Washington Post first reported the news about Richardson’s resignation.

A former Marine Corps officer who served in Iraq and Afghanistan and also led the DHS Countering Weapons of Mass Destruction office, Richardson had no previous emergency management experience when he assumed the role of “senior official performing the duties of administrator” in May.

After replacing Hamilton, who was fired one day after telling a House appropriations committee that he did not think FEMA should be eliminated, Richardson vowed to help fulfill President Donald Trump’s goal to push more disaster recovery responsibilities to the states and told FEMA employees he would “ run right over ” anyone who tried to obstruct that mission.