The file
Do Kwon
Photo: FAQXโ„ข We mining it., CC BY 3.0, via Wikimedia Commons
person

Do Kwon

South Korean co-founder of Terraform Labs, born 1991

Entries
16
On the record
12
Stories
1
Latest entry
Dec 11, 2025

The record

Compiled by the MrScandal desk from the documents below ยท Desk editor Laima ฤ’rkลกฤทe-Kreicberga ยท Nov 9, 2026

Do Hyeong Kwon co-founded Terraform Labs in 2018 and ran it as chief executive, according to federal prosecutors in Manhattan. Terraform issued the TerraUSD stablecoin, which it said could always be exchanged for $1 worth of its LUNA token, and built the Chai, Mirror and Anchor products around the Terra blockchain. Prosecutors said UST and LUNA had an apparent combined market value above $50 billion at their peak in spring 2022, and that investors lost more than $40 billion in the May 2022 crash.

The civil case came first. The SEC sued Terraform and Kwon in federal court in Manhattan in February 2023, and a jury found both liable for securities fraud on April 5, 2024. Two months later they agreed to pay more than $4.5 billion, including an $80 million civil penalty against Kwon, while Terraform wound down through its Delaware bankruptcy. South Korean prosecutors had already obtained a warrant for his arrest in September 2022.

The criminal case followed his arrest in Europe in March 2023, while he was traveling on a false passport, and his extradition from Montenegro on December 31, 2024. In August 2025 he pleaded guilty to conspiracy and wire fraud, admitting to schemes that prosecutors said led to billions in investor and user losses, and agreed to forfeit more than $19 million. Under the plea deal, U.S. prosecutors will not oppose a request to transfer him to Korea after he serves half his sentence, the Korea Times reported.

Roles and honours on the record

  • 2018-2023 Co-founder and chief executive officer, Terraform Labs PTE Ltd. source
  • 2023-2024 Defendant, SEC v. Terraform Labs PTE Ltd. and Do Hyeong Kwon, U.S. District Court for the Southern District of New York source
  • 2025 Defendant, United States v. Do Hyeong Kwon, before U.S. District Judge Paul A. Engelmayer, Southern District of New York source

Every entry, newest first

Last entry Dec 11, 2025
  1. Ruled

    Kwon was sentenced to 15 years in prison. Do Kwon gets 15 years for Terra's $45B collapse

  2. Admitted

    Kwon pleaded guilty to conspiracy to commit fraud and wire fraud under a plea agreement; the court later ordered him to forfeit $19 million. Do Kwon gets 15 years for Terra's $45B collapse

  3. Ruled

    Kwon was extradited from Montenegro to the United States. Do Kwon gets 15 years for Terra's $45B collapse

  4. Filed

    Terraform Labs filed for bankruptcy in the US in January 2024. Do Kwon gets 15 years for Terra's $45B collapse

  5. Filed

    Kwon was arrested in Montenegro while trying to board a plane to Dubai, and US prosecutors charged him with fraud. Do Kwon gets 15 years for Terra's $45B collapse

  6. Filed

    The SEC charged Kwon and Terraform Labs with orchestrating a multi-billion-dollar crypto asset securities fraud. Do Kwon gets 15 years for Terra's $45B collapse

Stories in this file

Do Kwon: SENTENCEDBusiness ยท 8d ago

๐Ÿ“‰ Do Kwon gets 15 years for Terra's $45B collapse

He pleaded guilty and loses $19M of his gains. Whether he faces a second trial in South Korea is still unresolved. โณ

The record, entry by entry

  1. 2022-09 Reported The joint financial crimes unit of the Seoul Southern District Prosecutors' Office obtained a warrant for Kwon's arrest, with charges including violations of Korea's Capital Markets Act, the Korea Times reported. The Korea Times report
  2. 2023-02-16 Filed The SEC sued Terraform and Kwon for violating the registration and anti-fraud provisions of the securities laws, alleging they raised billions of dollars from investors between April 2018 and the collapse in May 2022. U.S. Securities and Exchange Commission, press release 2023-32
  3. 2023-03-23 Official Kwon was arrested in Europe while traveling on a false passport. U.S. authorities submitted a formal request for his arrest and extradition on March 25, 2023. U.S. Attorney's Office, Southern District of New York, release 25-184
  4. 2024-01-21 Filed Terraform filed a Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. U.S. Securities and Exchange Commission, press release 2024-73
  5. 2024-04-05 Ruled After a nine-day trial, a federal jury in Manhattan unanimously found Terraform and Kwon liable for securities fraud, deliberating for less than two hours. U.S. Securities and Exchange Commission, press release 2024-73
  6. 2024-06-13 Official The SEC announced that Terraform and Kwon would pay more than $4.5 billion. Kwon's share was $110 million in disgorgement and $14.3 million in prejudgment interest, both joint with Terraform, plus an $80 million civil penalty. U.S. Securities and Exchange Commission, press release 2024-73
  7. 2024-12-31 Official Kwon was extradited from Montenegro to the United States. U.S. Attorney's Office, Southern District of New York, release 25-184
  8. 2025-08-12 Admitted He pleaded guilty before Judge Paul A. Engelmayer to one count of conspiring to commit commodities, securities and wire fraud and one count of wire fraud, together carrying a maximum of 25 years, and agreed to forfeit more than $19 million, including his interest in Terraform. U.S. Attorney's Office, Southern District of New York, release 25-184
  9. 2025-08-12 Filed Citing the superseding indictment and court proceedings, prosecutors said that after UST lost its peg in May 2021 Kwon arranged for a high-frequency trading firm to buy large amounts of UST to support it, and that he falsely claimed the Chai payment app processed transactions on the Terra blockchain. U.S. Attorney's Office, Southern District of New York, release 25-184
  10. 2025-12-11 Ruled Judge Engelmayer sentenced him to 15 years in prison. Under the plea deal, U.S. prosecutors agreed not to oppose a prisoner-transfer request after he serves half the sentence, and a senior Korean prosecutor said trying him in Korea would best serve local victims, the Korea Times reported. The Korea Times report

Documents

Sources behind this file

  1. The Korea Times report: 15-year sentence and a possible Korea trial ยท Report, Dec 15, 2025
  2. BBC News report: Do Kwon extradited to the US ยท Report, Dec 31, 2024
  3. Bloomberg report: Korean prosecutors seek millions tied to Do Kwon ยท Report, Jun 8, 2023
  4. Bloomberg report: Do Kwon retained a law firm before the collapse (KBS News) ยท Report, Apr 17, 2023
  5. NBER working paper: Anatomy of a Run - The Terra Luna Crash ยท Report, Apr 2023
  6. Bloomberg report: Do Kwon arrested in Montenegro ยท Report, Mar 23, 2023
  7. BBC News report: SEC charges Do Kwon with fraud ยท Report, Feb 17, 2023
  8. Bloomberg report: Terra's $45 billion collapse ยท Report, May 13, 2022