A U.S. judge has sentenced Terra founder Do Kwon to 15 years in prison, concluding one of the major fraud cases in crypto history.
The verdict, pronounced on 11 December 2025, follows Kwon's confession of guilt earlier this year.
End of the crypto-winter saga 2022?
This ruling ends a legal battle lasting three years and seven months that began after the collapse of Terra's algorithmic stablecoin ecosystem in May 2022. During this, tens of billions in market value were lost, leading to significant issues across the entire crypto sector.
According to the prosecutors, Kwon deliberately misled investors about the stability of TerraUSD and the coverage of the entire ecosystem.
Kwon's sentence is shorter than the 25 years that FTX founder Sam Bankman-Fried received, but both cases have influenced global policy regarding digital assets.
The prosecutors highlighted the extent of the damage caused by the collapse of Terra. They referred to the losses of many small investors and the consequences for lending platforms and hedge funds.
Kwon was indicted in both the United States and South Korea before being extradited. Due to his guilty plea, the cases could be handled together in the U.S., and the ruling now follows.
The court emphasized the protection of investors and accountability as important reasons for the sentence.
This ruling is a significant moment for the Terra community, which still trades the old tokens LUNC and LUNA, despite the network's disintegration. The market remains volatile as traders try to understand the implications of Kwon's conviction.
Now that the case is concluded, regulators are likely to use the ruling as an example in future enforcement regarding algorithmic stablecoins and risky financial products in crypto.
