Do Kwon sentenced to 15 years in prison… Terra·Luna plunge together

Doohyun Hwang

Summary

Do Kwon, co‑founder of Terraform Labs, was sentenced to 15 years in prison, and Terra·Luna ecosystem virtual assets reportedly plunged simultaneously.
On the Binance Tether market, Terra Classic (LUNC) fell 15%, Terra (LUNA) fell 12%, and Terra Classic USD (USTC) fell 17.03%.
Do Kwon's transfer to South Korea became less likely, and the scale of the damage and the seriousness of market disruption caused by the Terra collapse were emphasized.

Do Kwon, co‑founder of Terraform Labs, was sentenced to 15 years in prison by a U.S. court on charges of triggering the Terra·Luna collapse, causing cryptocurrencies of the Terra ecosystem to plunge simultaneously.

On the 11th (local time), on the Binance Tether (USDT) market, Terra Classic (LUNC) recorded 0.00005308 dollars, down 15% from the previous day. Terra (LUNA) was also trading at 0.1784 dollars, down 12%. Terra Classic USD (USTC) plunged 17.03% to 0.00911 dollars.

The U.S. District Court for the Southern District of New York sentenced Do Kwon to 15 years in prison for causing the 2022 collapse of the algorithmic stablecoin 'Terra.' This is a heavier sentence than the prosecutors' 12‑year request, and the court reportedly emphasized the scale of the damage caused by the Terra collapse and the seriousness of the market disruption.

Do Kwon's transfer to South Korea also became more remote. Do Kwon must serve half of the imposed sentence before a request for transfer to South Korea is possible. In particular, the court expressed great concern about Do Kwon's future transfer to South Korea.

Judge Engelmayer asked, "In what way could the United States control the possibility that Do Kwon would be released early in Korea?" and requested additional information from authorities of both countries. The prosecutors replied that they "have not obtained specific information" about the level of prosecution and punishment in Korea, and the Korean prosecutors said only that "they cannot disclose the level of punishment, but it appears that Do Kwon is contesting the charges in Korea."