Do Kwon Faces Possible Korean Trial After Receiving 15-Year U.S. Prison Sentence

Highlights:

• Do Kwon is facing new legal risks as Korea prepares separate charges for the founder.
• Korean prosecutors plan to focus on investor losses and alleged violations of capital markets rules in the new trial.
• The transfer decisions and sentencing differences will shape the next steps in the case.

Terraform Labs co-founder Do Kwon is facing new legal pressure in South Korea after a U.S. judge sentenced him to 15 years. Judge Paul Engelmayer issued the sentence last week and cited the scale of investor losses. He also ordered the forfeiture of $19 million tied to illicit gains. Kwon entered a guilty plea in August under a deal that limited the recommended sentence to 12 years. However, the court rejected both the 12-year proposal and the defense’s request for five years.

⚖️ Do Kwon Could Face Second Trial in Korea After 15‑Year US Sentence

Do Kwon sentenced to 15 years in the U.S. for the Terra collapse, while South Korean prosecutors prepare a separate trial that could seek a sentence exceeding 30 years. #crypto

— CryptOpus (@ImCryptOpus) December 15, 2025

Engelmayer stated that the damage needed a more dramatic response and that there are few cases of fraud that could relate to the damage done by the Terra collapse. The prosecutors claimed that the losses were close to $40 billion in global markets. The court found that the malpractice had affected numerous investors and generated dramatic market shocks. The decision gave Kwon a longer sentence than either of the two offers.

Authorities said Kwon may apply for transfer under the International Prisoner Transfer Program after serving half his U.S. sentence. This move could return him to Korea, where prosecutors aim to begin a separate trial. Officials said they want to address the losses suffered by Korean investors. They estimate that about 200,000 local victims lost nearly 300 billion won. These figures continue to influence Korea’s push for additional charges.

Korean Prosecutors Target Do Kwon Over Capital Markets Violations

Korean prosecutors plan to move ahead with charges tied to violations of the Capital Markets Act. These charges relate to the same events examined in the U.S. case but remain separate under Korean law. The Seoul Southern District Prosecutors’ Office secured an arrest warrant in 2022. Officials said they prepared for a potential trial while they awaited Kwon’s return. Ten alleged accomplices have already faced trial for nearly three years.

Prosecutors indicated that the case would have to be handled by the Korean courts since most of the impacted investors are local. A top prosecutor indicated that a conviction would result in over 30 years of imprisonment. Officials claim that a Korean trial gives them the opportunity to seek accountability within local rules. They further claimed that domestic prosecution provides greater support in victim compensation.

The Korean charges track the events that led to the collapse of TerraUSD and Luna in 2022. Terraform Labs claimed TerraUSD used a protocol-based system to maintain a one-to-one dollar peg. However, evidence later showed that an investment firm secretly purchased TerraUSD to support its price. This activity remained concealed from investors during earlier declines.

Transfer Decision Will Shape What Happens Next

Legal observers continue to study how Kwon’s sentence compares with other high-profile crypto cases. They pointed out the difference between the 15 years of Kwon and the 25 years of Sam Bankman-Fried. They also cited the first 130-year exposure per the federal guidelines. These comparisons indicate broad variations in the sentencing outcomes of various cases. They also reflect the influence of plea deals and advisory ranges.

Crypto mogul Do Kwon sentenced to 15 years in prison over massive $40B currency collapse https://t.co/9xLNCJF4mT pic.twitter.com/ZIhfrvlKjz

— New York Post (@nypost) December 11, 2025

Kwon will get credit for the time spent in the custody of the U.S. Authorities are yet to determine whether his imprisonment in Montenegro will be factored into the American term. It is also not clear how long a transfer request will take since the U.S. officials need to make a decision first. Korean prosecutors indicated that they will move forward when the transfer is made. The ultimate result is based on choices made in both nations.