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.”

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.

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.

U.S. Rep. Elise Stefanik, a close Republican ally of President Donald Trump, announced Friday that she’s running for governor of New York, a place she depicted in a campaign launch video as being “in ashes” because of lawlessness and a high cost of living.

In her video, a narrator declares “The Empire State has fallen” as it painted a grim picture of crime and economic crisis in New York City, though her message appeared to be aimed at other, more conservative parts of the state that she will need to win over next year.

“Under Kathy Hochul’s failed leadership, New York is the most unaffordable state in the nation with the highest taxes, highest energy, utilities, rent, and grocery prices crushing hardworking families,” Stefanik said in a statement.

Stefanik, who represents a conservative congressional district in upstate New York, has for months teased a run, leveling heavy criticism at incumbent Gov. Kathy Hochul and more recently toward Zohran Mamdani, the mayor-elect of New York City.

Last year, Trump picked Stefanik to be the administration’s ambassador to the United Nations, but later rescinded the nomination over concerns about Republicans’ tight margins in the House.

Though any Republican faces long odds of winning the governor’s mansion in New York, Stefanik’s campaign will bring solid name recognition, fundraising prowess and deep ties to the White House. Her campaign announced Friday that she has received the backing of nearly three-quarters of the state’s county Republican chairs.

In a statement, Hochul campaign spokesperson Sarafina Chitika called Stefanik “Donald Trump’s number one cheerleader in Congress.”

“Apparently, screwing over New Yorkers in Congress wasn’t enough — now she’s trying to bring Trump’s chaos and skyrocketing costs to our state,” Chitika said.

The Republican primary field remains unclear ahead of the 2026 race. U.S. Rep. Mike Lawler had been contemplating a run and was considered a potentially strong candidate, but said earlier this year that he would instead seek reelection in his battleground House district in the New York Hudson Valley.

Hochul faces a contested primary, with her own lieutenant governor, Antonio Delgado, running against her.

Stefanik, a Harvard graduate, was 30 when she was first elected to the House in 2014. She entered Congress as a moderate Republican but soon attached herself to Trump, reshaping her persona into more of a brash, outspoken MAGA disciple.

Her national profile got a big boost after she aggressively questioned a group of university presidents over antisemitism on their campuses, leading to two of their resignations and winning praise from the Republican president.

Democrats have a major voter registration edge in New York. The last Republican governor in the state was former Gov. George Pataki, who left office about two decades ago. Still, Republican Lee Zeldin, a former Long Island congressman and current head of the Environmental Protection Agency, made a serious run for the office in 2022, coming within striking distance of upsetting Hochul.

The national battle to control the U.S. House shifts to California on Tuesday as voters consider a Democratic proposal that could erase as many as five Republican districts and blunt President Donald Trump’s moves to safeguard his party’s lock on Washington power.

The outcome will reverberate into next year’s midterm elections and beyond, with Democrats hoping a victory will set the stage for the party to regain control of the House in 2026. A shift in the majority would imperil Trump’s agenda for the remainder of his term at a time of deep partisan divisions over immigration, health care and the future direction of the nation.

“God help us if we lose in California,” Democratic Gov. Gavin Newsom says.

Democrats need to gain just three seats in the 2026 elections to take control of the House.

Heavily Democratic California and its 52 congressional districts represent by far the Democrats’ best opportunity in an unprecedented state-by-state redistricting battle, which started when Texas Republicans heeded Trump’s demand that they redraw their boundaries to help the GOP retain its House majority. Democrats hold 43 of the state’s seats and hope to boost that to 48.

Trump is fighting not just the Democrats but history. Midterm elections typically punish the party in the White House, but four GOP-led states so far have adopted new district maps to pack more Republican voters into key districts.

Measure supported by Newsom, Obama

California’s Proposition 50 asks voters to suspend House maps drawn by an independent commission and replace them with rejiggered districts adopted by the Democratic-controlled Legislature. Those new districts would be in place for the 2026, 2028 and 2030 elections.

The recast districts aim to dilute Republican voters’ power, in one case by uniting rural, conservative-leaning parts of far northern California with Marin County, a famously liberal coastal stronghold across the Golden Gate Bridge from San Francisco.

The measure has been spearheaded by Newsom, who has thrown the weight of his political operation behind it in a major test of his mettle ahead of a potential 2028 presidential campaign. Former President Barack Obama has urged voters to pass it as well.

Newsom has sought to nationalize the campaign, depicting the proposal as a counterweight to all things Trump.

“Republicans want to steal enough seats in Congress to rig the next election and wield unchecked power for two more years,” Obama says in one ad. “You can stop Republicans in their tracks.”

Critics say two wrongs don’t make a right. They urge Californians to reject what they call a Democratic power grab, even if they have misgivings about Trump’s moves in Republican-led states.

Among the most prominent critics is Arnold Schwarzenegger, the movie star and former Republican governor who pushed for the creation of the independent commission, which voters approved in 2008 and 2010. It makes no sense to fight Trump by becoming him, Schwarzenegger said in September, arguing that the proposal would “take the power away from the people.”

“I don’t want Newsom to have control,” said Rebecca Fleshman, a 63-year-old retired medical assistant from Norco in Southern California, who voted against the measure. “I don’t want the state to be blue. I want it to be red.”

After an early burst of TV advertising, opponents of the plan have struggled to raise cash in a state with some of the nation’s most expensive media markets. Data compiled by advertising tracker AdImpact last week showed Democrats and other supporters with over $5 million in ad buys booked on broadcast TV, cable and radio. But opponents had virtually no time reserved, though the data didn’t include some popular streaming services like Hulu and YouTube or mail advertising.

Total spending on broadcast and cable ads topped $100 million, with more than two-thirds of it coming from supporters. Newsom told people to stop donating in the race’s final weeks.

Trump, who overwhelmingly lost California in his three presidential campaigns, largely stayed out of the fray. A week before the election, he urged voters in a social media post not to vote early or by mail — messaging that conflicts with that of top Republicans in the state who urged people to get their ballots in as soon as possible.

Democrats hope to pick up as many as five seats in California if voters approve the new boundaries, offsetting the five that Republicans hope to pick up through their new Texas maps. Republicans also expect to gain one seat each from new maps in Missouri and North Carolina, and potentially two more in Ohio.

Congressional district boundaries are typically redrawn every 10 years to reflect population shifts documented in the census. Mid-decade redistricting is unusual, absent a court order finding fault with the maps in place.

Five other GOP-led states are also considering new maps: Florida, Indiana, Kansas, Louisiana and Nebraska. On the Democratic side, Colorado, Illinois, Maryland, New York and Virginia have proposals to redraw maps, but major hurdles remain.

A court has ordered new boundaries be drawn in Utah, where all four House districts are represented by Republicans, but it remains to be seen if the state will approve a map that makes any of them winnable for Democrats.