Do Kwon, the South Korean tech entrepreneur who founded the crypto company Terraform Labs, has been sentenced to 15 years in prison. But it turns out that one jail sentence may not be enough for him.
The crypto founder was once one of the most popular figures in the burgeoning crypto industry, and Terraform Labs used to lead the industry boom from the forefront.
Related: Popular crypto company shuts down as Bitcoin crashes
But the collapse of the project's twin cryptocurrencies, TerraUSD (UST) and LUNA, in 2022 led to an estimated $40 billion in investor losses, and the entrepreneur found himself in serious legal trouble.
In March 2023, Montenegrin authorities arrested Do Kwon when he was attempting to flee to Dubai.
In January 2024, Terraform Labs filed for Chapter 11 bankruptcy in the U.S.
As the crypto founder got extradited from Montenegro to the U.S., the legal proceedings continued to take place. He was found guilty of nine charges, including fraud and money laundering, and a Manhattan federal court recently sentenced him to 15 years in prison and and ordered the forfeiture of $19 million in illicit gains.
But it may not be enough for Do Kwon, as per a local news report.
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South Korea could also target Do Kwon
Korea Times reported on Dec. 15 that the 34-year-old could apply to the International Prisoner Transfer Program after serving half of his 15-year sentence, and the U.S. prosecutors wouldn't oppose the request as part of a plea deal.
It means he could be transferred to South Korea.
If he is transferred to the Asian country, he would face a separate trial on charges including violations of the Capital Markets Act.
What it means is that Do Kwon could receive additional punishment in South Korea, independent of the U.S. sentence. Notably, the Seoul Southern District Prosecutors' Office had already obtained his arrest warrant in September 2022, the report added.
"A guilty verdict in Korea could lead to a sentence of more than 30 years," a senior prosecutor said.
"Prosecuting Kwon domestically would best serve efforts to compensate local victims."
It is estimated that approximately 200,000 victims of the Terraform scheme in South Korea lost $204 million, the report mentioned.
Notably, Do Kwon's defence team requested the U.S. court to sentence him at most to five years because he is facing parallel investigations and could potentially be prosecuted in South Korea also.
But the court rejected the argument by saying speculation about another court's ruling can't have a bearing on the present court's judgement.
This story was originally published by TheStreet on Dec 15, 2025, where it first appeared in the Bankruptcy News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
