A U.S. court has sentenced Terra founder Do Kwon to 15 years in prison, concluding one of the most significant fraud cases in the history of crypto.
The sentence, pronounced on December 11, 2025, comes after Kwon admitted his guilt earlier this year.
End of the saga of the crypto winter 2022?
The conviction ends a legal battle that lasted three years and seven months, which began after the collapse of the algorithmic stablecoin ecosystem of Terra in May 2022, wiping out tens of billions of dollars in market value and triggering a series of failures in the crypto sector.
Prosecutors argued that Kwon knowingly misled investors about the stability of TerraUSD and the support for the broader ecosystem.
The sentence imposed on Kwon is less than the 25 years handed down to FTX founder Sam Bankman-Fried, although both cases have changed the attitude of regulators globally towards digital assets.
Prosecutors emphasized the extent of the damages caused by the implosion of Terra, citing significant losses among retail investors and systemic fallout on lending platforms and hedge funds.
Kwon had been charged both in the United States and South Korea before being extradited. His guilty plea led to the choice of U.S. jurisdiction, allowing for today's sentencing.
The court highlighted that investor protection and accountability were central elements in determining the length of the sentence.
This decision represents a turning point for the Terra community, which continues to trade the historic tokens LUNC and LUNA despite the network's collapse. Market movements remain volatile as traders assess the implications of Kwon's conviction.
With the case now closed, it is likely that regulators will use this ruling as a benchmark for future actions on algorithmic stablecoins and high-risk financial structures in the crypto sector.
