Do Kwon Falls Hard — Terraform Labs Chief Gets 15 Years For Wire Fraud

Do Kwon, the South Korean co-founder of Terraform Labs, was sentenced to 15 years in prison on December 11, 2025 in a Manhattan federal court after pleading guilty to fraud tied to the collapse of the TerraUSD stablecoin and its sister token, Luna. Related Reading: Is Dogecoin Waking Up? Critical On-Chain Metric Explodes Higher According to court documents and news reports, the judge described the scheme as a massive fraud that left thousands of investors facing heavy losses. Sentence And Court Ruling Judge Paul A. Engelmayer handed down the 15-year term after prosecutors urged for a sentence of up to 12 years and the defense asked for a much lighter term. Do Kwon pleaded guilty in August 2025 to conspiracy to defraud and wire fraud, and as part of the plea he agreed to forfeit roughly $19 million. The US Attorney’s office says the guilty plea admits he misled investors about how the stablecoin kept its $1 peg. Scale Of The Losses Reports have placed the market fallout from the Terra c