Court verdict for Do Kwon: 15 years for Terra and a large-scale UST scam

UnluckyLemur · 2026-01-13T08:23:55+00:00

Do Kwon, the founder of the collapsed Terra crypto project, was sentenced to 15 years for fraud related to the UST stablecoin. The New York court deemed the unprecedented financial harm to investors, amounting to $40 billion, warranted severe punishment. Kwon faces additional charges in South Korea, potentially adding 40 more years to his sentence.

UnluckyLemur

2026-01-13 08:23:55

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The collapse of the crypto project Terra has found its conclusion in an American court. Do Kwon received a harsh sentence of 15 years in prison for fraud related to the blockchain collapse and its stablecoin UST. The New York court did not show leniency towards the project founder, as the scale of the damage caused was truly unprecedented.

Details of Do Kwon’s Sentencing and Guilt

On December 11, 2025, Do Kwon pleaded guilty to two counts of fraud. Judge Paul Engelmeyer considered the proposed plea agreement with a five-year term but deemed it insufficient for such a crime. The judge characterized the scheme as unprecedented in scale, noting that victims suffered unimaginable material and moral damages.

Investor Losses

Investors lost approximately $40 billion as a result of the Terra collapse and its token UST. Such colossal losses placed this case among the largest crypto scandals in industry history. The court found it necessary to impose a severe punishment to send a signal to other market participants about the inevitability of accountability for fraudulent schemes.

International Prosecution

Do Kwon will not escape justice outside the United States. In South Korea, he faces related charges, which could result in up to 40 additional years in prison. Thus, the former Terra founder could face a lengthy prison term, highlighting the seriousness of international efforts to prosecute individuals involved in large-scale scams in the crypto sector.

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