What happened after Terra: $4.5 billion to the SEC and 15 years for Do Kwon

In June 2023, Bitminer.io reported that Daniel Shin, a co-founder of Terraform Labs, had been indicted in South Korea over the collapse of the Terra ecosystem. His case is outside the US agencies the Bitminer.io enforcement ledger follows. The ledger does record what happened in the US to Terraform and its other co-founder, Do Kwon.

The SEC verdict

In April 2024, a jury found Terraform and Kwon liable for fraud in the SEC’s case. On June 13, 2024, they agreed to pay more than $4.5 billion. Kwon was to contribute more than $200 million, and Terraform was to wind down, with its assets going to investors and creditors in bankruptcy. The SEC said the collapse of UST in May 2022 wiped out $40 billion in market value nearly overnight.

In December 2024, the SEC charged Tai Mo Shan, a subsidiary of Jump Crypto, with misleading investors about UST’s stability by buying it to support its price. Tai Mo Shan agreed to pay $123 million.

The criminal case

Kwon was extradited to the US on December 31, 2024, and pleaded guilty in August 2025. On December 11, 2025, he was sentenced to 15 years in prison for wire fraud and conspiracy to commit securities fraud, commodities fraud and wire fraud.

Sources

1. Bitminer.io, 4 June 2023: Terra Co-founder Daniel Shin Now Charged With Fraud
2. SEC, Terraform and Kwon to pay $4.5 billion
3. SEC, Tai Mo Shan settlement
4. US Department of Justice, Kwon sentencing

By The Assayer, the Bitminer.io house byline. Written by AI from the sources above and checked automatically. No person reviewed it before publication. How we work.

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