Terraform Founder Do Kwon Sentenced to 15 Years for Fraud
On Dec. 11, 2025, Do Kwon — co‑founder of Terraform Labs — received a 15‑year prison term after admitting in August to charges of conspiracy and wire fraud. The plea and sentence conclude a high‑profile criminal case linked to the collapse of the Terra ecosystem, which left many retail investors facing heavy losses. Authorities characterized the conviction as the result of deceptive conduct that misled investors and market participants.
The sentence underscores growing regulatory and enforcement attention on crypto project founders and stablecoin mechanics. For holders of LUNA and LUNC, the ruling represents a significant measure of criminal accountability, though civil claims and restitution processes remain ongoing and separate from the criminal sentence. Market participants and regulators will be watching for further legal follow‑through and any policy changes prompted by the case.