๐จ BREAKING: DO KWON SENTENCED TO 15 YEARS IN U.S. FEDERAL PRISON
Terra/LUNA founder Do Kwon has been sentenced to 15 years in U.S. federal prison (Dec 12, 2025). Judge Paul Engelmayer described the Terra collapse as โa fraud on an epic, generational scale.โ
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๐ฅ Key Highlights
๐งโโ๏ธ The Sentencing
The judge called the governmentโs 12-year recommendation โunreasonably lenient.โ
The defenseโs request for 5 years was deemed โutterly unthinkable.โ
Maximum possible sentence was 25 years.
Kwon previously pled guilty to fraud charges in August.
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๐ธ Financial Penalties
Forfeiture: Over $19 million
Civil fines: $80 million
Full ban from crypto under a $4.55B SEC settlement
Losses tied to the Terra/LUNA collapse exceed those from both FTX (SBF) and OneCoin (Greenwood) combined
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โ ๏ธ The Fraud Findings
During the May 2021 UST depeg, Kwon publicly insisted the algorithm was restoring stability.
Privately, he allegedly coordinated with a trading firm to artificially support USTโs price.
Over 300 victim letters described destroyed savings, retirement losses, family breakdowns, and total financial ruin.
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๐ Market Reaction (Past 24 Hours)
$LUNC: -32%
$LUNA: -36%
These sharp declines followed a massive +250% rally over the past 10 days โ a classic speculation-driven spike followed by a legal-induced crash.
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๐ What Happens Next
The judge denied Kwonโs request to serve his sentence in South Korea.
A transfer may be considered only after he serves half of his U.S. sentence.
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This marks one of the most significant legal moments in crypto history โ and markets are reacting instantly. Stay vigilant.
