$40 billion evaporates, and he finally paid the price after 15 years.

On December 11, the U.S. Department of Justice officially announced that Do Kwon (赵圣男), the creator of the Terra ecosystem, was sentenced to 15 years in federal prison in the Southern District of New York. This man, who once hyped up algorithmic stablecoins to the skies, ultimately paid the price for the global shock collapse.

**A Carefully Crafted Scam**

Back in May 2022, the entire crypto world witnessed an epic crash: UST, a so-called forever-anchored 1 USD algorithmic stablecoin, suddenly de-pegged, causing LUNA tokens to plummet in value. In just a few days, the digital assets in investors’ wallets turned to almost nothing.

What did Do Kwon do? The judge's answer was straightforward—systemic fraud. From technical promotion to market manipulation, from false transactions to misleading information, this combination of tactics caused global investors to lose over $40 billion. This cannot be explained by mere "market risk."

**From Fleeing to Prison Timeline**

- After the May 2022 crash, Do Kwon started hiding around the world
- On December 31, 2024, after cooperation with multiple countries, he was extradited to the United States
- In August 2025, he pleaded guilty in the Manhattan Federal Court, admitting to securities fraud and other charges
- On December 11, 2025, the gavel fell: 15 years plus the confiscation of illegal gains

**What’s the status of those tokens now?**

Here's an interesting point: tokens like LUNA and USTC haven't completely disappeared. They are still listed on some exchanges, but the prices... are basically just decorations. Are people still trading them? Yes, pure emotional speculation. The value of these tokens no longer depends on technology or ecosystems; it’s entirely driven by how the news is炒作.

Current LUNA2, 1000LUNC, and USTC perpetual contracts still show quotes, but honestly, they are more like exhibits in the crypto market museum—reminding later generations how dangerous algorithmic stablecoins can be.

This case serves as a lesson for the entire industry: no matter how compelling your story sounds, the market may temporarily buy in, but the law will eventually settle accounts. Fifteen years is enough time for many to think things through.