Archive · 12 Dec 2025
Do Kwon Sentenced to 15 Years for $40 Billion Fraud
Do Kwon, once a famous figure in the world of digital money, was sentenced to 15 years in prison.
He was found guilty of tricking people into investing in a type of digital money called TerraUSD, which was supposed to be safe but turned out to be a scam.
This scam caused many people to lose a lot of money, including their life savings and retirement funds.
Some people even had to move back in with their parents or skip college because of the losses.
Do Kwon apologized in court, saying he was sorry for the harm he caused.
The judge called it a huge fraud that affected many lives.
Do Kwon will also have to give up over $19 million as part of his punishment.
He is still facing fraud charges in his home country, South Korea.
Do Kwon, co-founder of Terraform Labs, was sentenced to 15 years in prison for a $40 billion fraud involving the stablecoin TerraUSD.
The fraud caused significant financial losses for an estimated 1 million victims, including the loss of life savings and retirement funds.
Kwon apologized in court, acknowledging the harm caused by his actions and the impact on victims' lives.
The judge described the fraud as 'a fraud on an epic, generational scale' and noted Kwon's 'almost mystical hold' on investors.
Kwon agreed to forfeit over $19 million as part of his plea deal and will serve his sentence in the United States.
- Who
- Do Kwon, a 34-year-old Stanford graduate and co-founder of Terraform Labs
- What
- Sentenced to 15 years in prison for fraud related to the collapse of Terraform Labs' stablecoin, TerraUSD
- When
- Sentenced on December 12, 2025
- Where
- Manhattan federal court, New York
- Why
- For orchestrating a $40 billion fraud that wiped out investors' savings and caused significant financial and personal hardship
- Name
- Do Kwon
- Age
- 34
- Sentence
- 15 years in prison
- Company
- Terraform Labs
- Crime
- Fraud
- Victims
- Estimated 1 million
- Loss Amount
- $40 billion
- Forfeiture
- $19 million
