Do Kwon Sentenced to 15 Years in Prison Over Terraform Crypto Fraud

A US federal court has sentenced Do Kwon, the co-founder of Terraform Labs, to 15 years in prison after convicting him of fraud and conspiracy linked to the 2022 collapse of a digital asset ecosystem that wiped out around $40 billion in value.

The ruling against Do Kwon was delivered during a hearing at Manhattan federal court, where judges concluded that investors were misled about the stability of TerraUSD, a token marketed as maintaining a stable value despite extreme crypto market volatility.

Prosecutors argued that Do Kwon’s actions caused massive financial losses and triggered a chain reaction across global cryptocurrency markets, prompting them to seek a sentence of at least 12 years.

The defense sought a lighter penalty that would allow the defendant to return to South Korea, where additional criminal charges are pending, but the court emphasized the scale of the economic damage and loss of investor confidence.

The verdict is seen as a landmark moment in tightening legal oversight of the crypto sector, underscoring a growing willingness by authorities to hold industry leaders accountable for digital asset fraud.