The information regarding Do Kwon is highly relevant and significant for the crypto community.

Here is a summary of the key facts about Do Kwon, his project, and the latest developments:

Do Kwon (full name: Kwon Do-hyeong, born 1991) is a South Korean entrepreneur, software engineer, and former co-founder and CEO of Terraform Labs.

His name became globally known following one of the largest crises in the history of cryptocurrencies.

• Project Core: Terraform Labs developed the Terra blockchain. Its central assets were:

  • Luna (LUNA): The primary cryptocurrency used as a collateral (reserve) asset.

  • TerraUSD (UST): An algorithmic stablecoin designed to maintain a peg to the US dollar (1 UST = $1).

• Mechanism: UST maintained its value through a complex algorithm that burned LUNA to create UST and vice-versa.

• The Collapse (May 2022): In May 2022, the algorithm failed under massive selling pressure, and UST's peg to the dollar was permanently lost (UST "de-pegged"). A domino effect ensued: the value of both UST and Luna plummeted virtually to zero, destroying nearly $45 billion in market capitalization in one week and triggering a cascade of crises across the entire crypto market.

• Charges: Following the UST/Luna collapse, Do Kwon faced fraud and conspiracy charges.

• Fleeing and Arrest: Do Kwon fled South Korea. In March 2023, he was arrested in Montenegro while attempting to leave the country using forged documents. After his arrest, he was eventually extradited to the United States (in December 2024).

• Guilty Plea: Do Kwon pled guilty in August 2025 to counts including wire fraud and conspiracy to commit fraud.

• Sentence: In December 2025, a U.S. District Court sentenced Do Kwon to 15 years in federal prison for fraud related to the collapse of TerraUSD and Luna. The judge described his actions as a fraud "of epic generational scale." The 15-year sentence was longer than the 12 years requested by prosecutors.

• Forfeiture: As part of his plea deal, Kwon agreed to forfeit over $19 million in proceeds from his illegal schemes.

• Future: After serving the first half of his sentence in the U.S., Kwon may be transferred to South Korea, where he still faces charges, provided he abides by the terms of his plea agreement.

Do Kwon is a symbol of how ambitious decentralized finance (DeFi) projects can lead to a catastrophic outcome with global consequences, and how regulators have begun aggressively prosecuting high-profile individuals in the crypto industry.