On December 11, 2025, Do Hyeong Kwon, co-founder and former CEO of Terraform Labs, was sentenced to 15 years in federal prison in the United States. This sentence was a result of his involvement in a significant fraud that led to the collapse of the TerraUSD (UST) stablecoin and its counterpart token Luna, resulting in a loss of $40 billion in May 2022. The legal actions against Kwon, who pleaded guilty to two fraud-related charges in August, have concluded with his sentencing in a Manhattan federal court. The 34-year-old South Korean had admitted guilt to two charges of wire fraud and conspiracy to defraud in the United States. It was during a hearing in New York that Kwon, who co-founded Terraform Labs in Singapore and developed the TerraUSD and Luna currencies, was handed his sentence. His acts were described by U.S. District Judge Paul Engelmayer as "a fraud of unprecedented generational magnitude."...