Do Kwon Faces Potential Second Trial in South Korea Following U.S. Sentencing
Do Kwon, the co-founder of Terraform Labs, has been sentenced to 15 years in U.S. prison for his role in the TerraUSD collapse, a scheme described as "a fraud on an epic, generational scale." The court also ordered him to forfeit $19 million in gains. South Korean prosecutors indicate he may face another trial upon his return, with potential charges linked to 200,000 victims and 300 billion won in losses, carrying a possible 30-year sentence.
The legal fallout from the TerraUSD and Luna collapse, which erased an estimated $40 billion, continues to reverberate. Authorities highlight the case as a stark warning about escalating legal risks for cryptocurrency founders. Investigations revealed Terraform Labs' reliance on undisclosed external support, compounding the scale of the deception.
