Do Kwon Faces New 30-Year Trial Threat in South Korea After US Sentence

Do Kwon, sentenced to 15 years in the US for the TerraUSD collapse, may face a second trial in South Korea, where prosecutors seek over 30 years for capital market violations affecting 200,000 local investors.

Do Kwon, co-founder of Terraform Labs, was sentenced to 15 years in a US federal court for orchestrating the $40 billion collapse of TerraUSD and LUNA, which caused significant losses to global and South Korean investors. Despite this sentence, South Korean prosecutors are preparing a separate trial, seeking a sentence exceeding 30 years for violations of the Capital Markets Act, with losses estimated at $204 million affecting around 200,000 local victims. The Korean charges stem from the same conduct as the US conviction but are considered independent, and authorities intend to pursue prosecution regardless of the American proceedings. Ten alleged accomplices have already faced trial in Korea. Kwon admitted to fraud and market manipulation, and the case has intensified scrutiny on stablecoins and digital asset regulation. After serving half his US sentence, Kwon may apply for transfer to Korea, where he could face additional charges and sentencing.