Kwon Do-hyung sentenced to 15 years in prison... Terra and Luna both plummet simultaneously

Source: HanKyungBlockchain Original Title: Kwon Do-hyung Sentenced to 15 Years in Prison… Terra & LUNA Collapses Simultaneously

Original Link: https://www.hankyung.com/article/202512129088B

Kwon Do-hyung, co-founder of Terraform Labs, was sentenced to 15 years in prison by a U.S. court for allegedly triggering the collapse of Terra and LUNA, causing the Terra ecosystem’s virtual assets(cryptocurrencies) to plummet across the board.

On the 11th(local time), in a market for Tether(USDT) at a certain tofu trading house, Terra Classic(LUNC) fell 15% from the previous day, recording $0.00005308. Terra(LUNA) also traded at a 12% decline, at $0.1784. Terra Classic USD(USTC) plummeted 17.03% to $0.00911.

That day, the Southern District Court of New York sentenced Kwon Do-hyung to 15 years in prison for causing the 2022 algorithmic stablecoin ‘Terra’ collapse. This was a harsher sentence than the 12 years prosecutors had requested, and the court reportedly emphasized the scale of damage caused by the Terra collapse and the seriousness of market disruption.

Kwon Do-hyung’s extradition to South Korea also became more uncertain. He must serve half of his sentence before applying for extradition to Korea. The court also expressed significant concern about Kwon Do-hyung’s future extradition to South Korea.

Judge Engelmaier asked, “How can the U.S. control the possibility of Kwon Do-hyung’s early release in Korea?” and requested additional information from both countries’ authorities. Prosecutors replied that they had not obtained specific information about the level of charges or punishments in Korea, and Korean prosecutors only stated, “While the level of punishment cannot be disclosed, it appears that Kwon Do-hyung is currently contesting charges in Korea.”