Ex‑Terra CEO Do Kwon Faces US 15‑Year Sentence and Possible 30+‑Year Trial in South Korea

Do Kwon, co‑founder and former CEO of Terraform Labs, was sentenced in the United States to 15 years in prison after pleading guilty to conspiracy to defraud and wire fraud over the 2022 TerraUSD (UST) and LUNA collapse. Montenegrin authorities detained Kwon in 2023 for traveling on fake documents; he was extradited to the US on 31 December 2024. Under his US plea deal he may apply for transfer to serve the remainder of his sentence under the International Prisoner Transfer Program after serving half the term, and US authorities did not oppose such a transfer. Separately, South Korean prosecutors have signalled intent to pursue domestic charges tied to fraud and violations of the Capital Markets Act; if convicted in Korea, Kwon could face penalties that in aggregate may exceed 30 years. Seoul estimates about 200,000 local victims and roughly $204 million in losses; ten alleged accomplices are already on trial in South Korea. Prosecutors argue a domestic trial would better serve victim compensation and could involve concurrent or additional prosecutions despite the US conviction. For traders: the developments extend legal and regulatory risk around Terra‑related projects and algorithmic stablecoins, sustaining negative sentiment for related forks and contagion concerns. Monitor legal updates, potential asset freezes or recoveries, and regulatory responses — all of which can affect liquidity and price action in tokens tied to the Terra ecosystem and the wider stablecoin narrative.