Terraform Labs' administrator has filed a $4 billion suit accusing Jump Trading of covertly manipulating the Terra ecosystem and profiting from its collapse, which wiped out about $40 billion in investor value. The complaint, filed in December, was reported by The Wall Street Journal and Bloomberg.
Do Kwon, co‑founder of Terraform Labs, was sentenced to 15 years in prison on Dec. 11, 2025 after admitting in August to conspiracy and wire fraud. The ruling is a major legal outcome tied to the collapse of the Terra ecosystem and affects holders of LUNA and LUNC.
Terraform Labs co-founder Do Kwon told U.S. authorities he believes a five-year prison term is an appropriate punishment for the Terra cryptocurrency fraud. The statement touches a high-profile case tied to the collapse of LUNA and LUNC.