A court in the USA sentenced Terra founder Do Kwon to 15 years in prison, concluding one of the most significant fraud cases in the history of cryptocurrencies.
The decision was made on December 11, 2025, after Kwon pleaded guilty earlier this year.
Do Kwon sentenced – end of the crypto winter saga 2022?
The verdict ends a three-year and seven-month legal battle that began after the collapse of the algorithmic stablecoin Terra in May 2022. This crash wiped out tens of billions of USD from the market and triggered a wave of bankruptcies across the cryptocurrency sector.
Prosecutors argued that Kwon knowingly misled investors about the stability of TerraUSD and the security of the entire ecosystem.
Kwon's sentence is shorter than the 25 years received by FTX founder Sam Bankman-Fried. However, both cases have changed the global approach of regulators to digital assets.
Prosecutors highlighted the enormous losses caused by the collapse of Terra, pointing to massive losses for retail investors and a cascade of collapses among lenders and hedge funds.
Kwon was tried in courts in the USA and South Korea before he was extradited. His guilty plea focused the proceedings under US jurisdiction, leading to today's verdict.
The court emphasized investor protection and accountability as key factors in determining the length of the sentence.
The decision is a turning point for the Terra community, which trades old LUNC and LUNA tokens despite the network's collapse. The market remains unstable, and investors are analyzing the implications of Do Kwon's conviction.
After the case is closed, regulators will likely use this ruling as a benchmark when enforcing laws against algorithmic stablecoins and risky instruments in cryptocurrencies.
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