U.S. Court Hearing Welcomes Do Kwon's Presence
The Securities and Exchange Commission (SEC) has reached a settlement with Terraform Labs and its co-founder, Do Kwon, over allegations of multibillion-dollar securities fraud involving unregistered digital assets such as Terra USD (UST), LUNA, and MIR. The consent order and civil penalties were entered on June 12, 2024.
According to the settlement, Terraform Labs will pay just under $4.5 million in monetary remedies to be allocated under its Chapter 11 bankruptcy plan. The SEC's allegations centered around the sale and promotion of these digital assets without proper registration, a violation of securities laws.
As of August 2025, no additional criminal trial dates or sentencing for Do Kwon related to this SEC civil case have been scheduled or made public. The last major procedural development was the June 2024 consent order confirming the settlement.
It's important to note that this SEC civil action resulted in monetary penalties rather than prison terms. No federal criminal sentencing dates or possible prison terms for Do Kwon related to Terraform Labs have been publicly announced.
Other ongoing litigation or trials involving Do Kwon, such as the Tornado Cash-related defense cases, do not appear connected to the Terraform Labs SEC fraud case itself.
Do Kwon, who was extradited from Montenegro to the U.S. in late 2024, appeared before a U.S. court on January 2, 2025, in relation to an indictment against him. The indictment, released by the Manhattan District Attorney's Office, includes nine counts, including conspiracy to commit fraud, money laundering, market manipulation, and securities fraud.
The legal wrangling between local courts and Kwon's defense team dates back to spring 2023. If found guilty on all charges, Do Kwon could face up to 130 years in prison. However, he has pleaded not guilty to the charges.
The case is still being closely followed by Inner City Press, which will continue to provide live updates and tweets about the ongoing proceedings. The case is related to alleged crypto fraud by Terraform Labs.
In the realm of finance and general-news, the SEC's settlement with Terraform Labs and Do Kwon over alleged securities fraud was finalized in June 2024, with the company agreeing to pay monetary remedies and admitting no wrongdoing. Coincidentally, in the domain of crime-and-justice, Do Kwon faces charges from the Manhattan District Attorney's Office for intricate counts related to fraud, money laundering, and securities fraud.
