A U.S. court sentenced Terra founder Do Kwon to 15 years in prison, concluding one of the most high-profile fraud cases in the history of cryptocurrency.

The decision, issued on December 11, 2025, followed Kwon's admission of guilt made earlier this year.

The end of a years-long saga
The verdict puts an end to the legal saga that lasted more than three years after the collapse of the algorithmic stablecoin ecosystem Terra in May 2022. At that time, the market lost tens of billions of dollars, and the crypto sector faced a wave of bankruptcies.

Scale of damage
The prosecution claimed that Kwon intentionally misled investors regarding the stability of TerraUSD and the entire ecosystem. The court noted that investor protection and accountability were key factors in determining the length of the sentence.

Comparison with other cases
Kwon's sentence turned out to be lighter than the verdict for FTX founder Sam Bankman-Fried, who received 25 years. Both cases became turning points for the regulation of digital assets.

International context
Before Kwon's extradition, charges were brought against him in both the USA and South Korea. His plea allowed the processes to be unified under U.S. jurisdiction.

Market reaction
Despite the network collapse, the Terra community continues to trade LUNC and LUNA tokens. Market dynamics remain volatile, and traders are assessing the implications of the verdict.

Precedent for the future
Experts expect that the verdict will set a precedent for regulating algorithmic stablecoins and risky financial models in the crypto industry.

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