Terraform Labs’ Do Kwon Gets 15 Years in Prison in the | Crypto Work Pro
A US court docket yesterday (Thursday) sentenced Do Kwon, the co-founder of Terraform Labs, to 15 years in jail after he pleaded guilty to wire fraud and conspiracy to defraud traders. The collapse of Terraform Labs worn out $40 billion in traders’ money.
Another Crypto Mogul Goes to Prison
According to the order of Judge Paul Engelmayer at the US District Court for the Southern District of New York, Kwon will obtain credit for time served in the US and 17 months of pre-extradition custody.
Before the sentencing, the decide additionally heard from some of the victims of Terraform. Kwon additionally testified in court docket earlier than the sentencing.
“I would like everyone to know that I have spent all my time thinking about what I could have done, and what I can do,” Kwon stated earlier than the sentencing. “It’s been four years since the crash, three years since I’ve seen my family. I’d like to [do] my penance in my home country.”
Do Kwon: I would love everybody to know that I’ve spent all my time considering what I might have carried out, and what I can do. It’s been 4 years since the crash, three years since I’ve seen my household. I’d wish to my penance in my home nation.
— Inner City Press (@innercitypress) December 11, 2025
He can be dealing with fraud costs in South Korea, his home nation.
The Collapse that Dented the Crypto Industry
Kwon was identified for founding Terraform Labs. However, the project’s two cryptocurrencies, TerraUSD and Luna, collapsed in 2022, erasing about $37 billion in worth. The fall of the algorithmic stablecoin led to the closure and downfall of a number of different cryptocurrency firms.
In 2023, Kwon and an affiliate had been arrested in Montenegro whereas attempting to journey to Dubai utilizing pretend journey paperwork. He was then extradited to the US, whereas South Korea was additionally attempting to push his extradition.
In June, Terraform Labs and Kwon agreed to a settlement with the US Securities and Exchange Commission (SEC), committing to pay round $4.5 billion in restoration and civil penalties. Kwon personally agreed to pay no less than $204.3 million.
At first, the US regulator sought $5.3 billion in settlement. However, the defendants’ legal group countered with an offer of $1 million in civil penalties and no restoration or injunction.
Additionally, Kwon and Terraform Labs had been completely banned from shopping for or promoting crypto asset securities, together with tokens in the Terra ecosystem.
Earlier this yr, Terraform Labs filed for chapter in Delaware, United States. In the court docket submitting, the defunct company reported liabilities between $100 million and $500 million, with estimated property in the similar vary.
After the sentencing, Kwon joined FTX founder and former CEO Sam Bankman-Fried, who obtained a 25-year jail sentence.
This article was written by Arnab Shome at www.financemagnates.com.
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