Do Kwon sentenced to 15 years after Terra collapse

Traders Union
All News
Crypto News
Do kwon sentenced

All news

Top Stories

Editors' Picks

Crypto News

Financial News

Currencies

Market Voices

Billionaires

Companies

Regulators News

Yaroslav Dmytrenko

12.12.2025

Do Kwon sentenced to 15 years after Terra collapse — Terraform Labs сo-founder gets 15-year sentence in U.S.

Terraform Labs co-founder Do Kwon has been sentenced to 15 years in a U.S. federal prison—the harshest penalty in a crypto-related fraud case to date.

A Manhattan federal court on Thursday sentenced the South Korean crypto entrepreneur to 15 years. Days before the sentencing, Do Kwon publicly pleaded for leniency, asking for a five-year term. Prosecutors sought 12 years, but the judge imposed an even longer sentence, citing the “extraordinary financial and human harm” caused by the collapse of the algorithmic stablecoin ecosystem.

According to media reports, the lengthy hearing and emotional testimony from victims contributed to the severity of the sentence. Individuals who lost their savings, businesses, and future plans due to the Terra collapse described in detail the long-term damage they suffered. Their stories had a significant impact on the court’s decision.

The sentencing marks the latest chapter in a three-year saga involving efforts to track down the individual responsible for the TerraUSD/LUNA collapse, including Do Kwon’s stay in Montenegro, where local leaders allegedly attempted to ease his situation.

From 5 to 135 years

After being extradited to the United States, Do Kwon admitted that the system he created misled investors about the true nature and stability of the TerraUSD (UST) stablecoin. His guilty plea consolidated what originally were nine charges into two counts related to securities, commodities, and wire fraud.

Without a plea agreement, Kwon faced up to 135 years in prison if convicted on all counts. Under the negotiated agreement, the maximum possible sentence was reduced to 25 years. Prosecutors recommended 12, but the judge imposed a harsher term after considering the consequences of the Terra collapse, the scale of the crime, and the damage caused.

Although Kwon will receive credit for the four months he already spent in detention in Montenegro, he must serve at least half of his sentence in the U.S. Some have speculated that he would receive a more “welcoming” treatment in South Korea, but this is unlikely.

South Korean authorities have their own unresolved charges against him and could seek a 40-year sentence, making Do Kwon’s case a unique precedent across multiple jurisdictions — as well as a defining moment in the history of crypto-related wrongdoing.

As we wrote, Do Kwon pleads guilty to $40 billion crypto market fraud

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.