A U.S. court has sentenced the founder of Terra, Do Kwon, to 15 years in prison, concluding one of the most significant fraud cases in the history of the crypto sector.
The ruling, pronounced on December 11, 2025, comes after Kwon pleaded guilty earlier this year.
End of the saga of the 2022 crypto winter?
The sentence ends a legal battle of three years and seven months that began after the collapse of Terra's algorithmic stablecoin ecosystem in May 2022, wiping out tens of billions of dollars in market value and triggering a chain of collapses across the crypto sector.
Prosecutors argued that Kwon knowingly deceived investors about the stability of TerraUSD and the backing of its overall ecosystem.
Kwon's sentence is less than the 25 years received by FTX founder Sam Bankman-Fried, although both cases have altered the global regulatory outlook on digital assets.
Prosecutors highlighted the magnitude of the damage caused by the collapse of Terra, citing significant losses for small investors and systemic consequences on lending platforms and hedge funds.
Kwon faced charges both in the United States and South Korea before being extradited. His guilty plea allowed for the consolidation of the proceedings under U.S. jurisdiction, enabling today's sentencing. The court emphasized investor protection and accountability as key factors in determining the sentence.
The decision marks a turning point for the Terra community, which continues to trade the historical tokens LUNC and LUNA despite the network's collapse. The market remains volatile as traders process the implications of Kwon's conviction.
With the case closed, regulators are expected to use the verdict as a reference for future regulatory actions related to algorithmic stablecoins and high-risk financial products in the crypto world.
