A U.S. court has sentenced Terra founder Do Kwon to 15 years in prison, concluding one of the most significant fraud cases in crypto history.
The decision, announced on December 11, 2025, comes after Kwon's confession earlier this year.
The end of the crypto winter in 2022?
The ruling marks the conclusion of a three-year and seven-month-long legal drama that began after the collapse of Terra's algorithmic stablecoin ecosystem in May 2022, erasing tens of billions in market value and triggering a chain reaction of failures in the crypto sector.
The prosecutors claimed that Kwon deliberately misled investors about the stability of TerraUSD and the foundation of the entire ecosystem.
Kwon received a shorter sentence than the 25 years given to FTX founder Sam Bankman-Fried, even though both cases have changed global regulatory attitudes towards digital assets.
The prosecutors emphasized the extent of the damages that followed Terra's collapse, pointing to significant losses for private investors as well as systemic risk for lending platforms and hedge funds.
Kwon had been indicted both in the USA and South Korea before extradition. His confession consolidated the investigation under U.S. jurisdiction, facilitating today's sentencing.
The court emphasized the protection of investors and accountability as key factors in the sentencing.
The decision marks a turning point for the Terra community, which continues to trade legacy tokens LUNC and LUNA despite the network's collapse. Market reactions remain volatile as traders assess the implications of Kwon's conviction.
With the case now concluded, regulators are expected to use the ruling as a reference point for future enforcement related to algorithmic stablecoins and high-risk financial engineering in crypto.
