Terraform Labs PTE Ltd
Terraform Labs built the TerraUSD stablecoin and the linked LUNA token, which collapsed in May 2022 with investor losses the US government puts at over US$40 billionS4. On 5 April 2024 a New York jury found Terraform and Do Kwon liable for defrauding investors in crypto asset securitiesS1. In June 2024 they agreed to pay more than US$4.5 billion to settle the SEC caseS2. Kwon was extradited from Montenegro on 31 December 2024S5, pleaded guilty in August 2025S3, and was sentenced to 15 years in prison on 11 December 2025S4. A bankruptcy court approved the firm's wind down in 2024S8.
- Also known as
- Terraform Labs, TFL
- Headquarters
- Singapore
- Records from
- United States
Scope. This record covers Terraform Labs and the TerraUSD and LUNA collapse. It does not cover other stablecoin issuers and does not assess co-founder Daniel Shin, who faced separate proceedings in South Korea.
Claims assessed
4 claims. Scores grade the evidence for each claim, not the organization.- Supported94The US Securities and Exchange Commission said that on 5 April 2024 a New York jury found Terraform Labs and Do Kwon liable for defrauding investors in crypto asset securities.Regulator statement, 5 April 20243 records citedFraud
- Supported97The US Department of Justice said Do Kwon pleaded guilty to fraud and was sentenced on 11 December 2025 to 15 years in prison with forfeiture of more than US$19 million.Regulator statement, 11 December 20253 records citedFraud
- Contradicted92In October 2023 Terraform Labs and Do Kwon told the court that the SEC had not proven the defendants did anything wrong.Press report, 30 October 20233 records citedFraud
- Outdated92At Do Kwon's extradition in January 2025 the Department of Justice said he faced a nine count indictment carrying a maximum sentence of 130 years in prison.Regulator statement, 2 January 20253 records citedFraud
Cases and proceedings
- SEC v. Terraform Labs PTE Ltd. and Do Hyeong KwonUS District Court for the Southern District of New York. Civil. 23-cv-1346 (JSR).Stage: Jury verdict of liability on 5 April 2024, resolved by consent judgment entered on 12 June 2024.
- United States v. Do Hyeong KwonUS District Court for the Southern District of New York. Criminal. 23 Cr. 151 (PAE).Stage: Guilty plea on 12 August 2025, sentenced on 11 December 2025.
- In re Terraform Labs Pte. Ltd.US Bankruptcy Court for the District of Delaware. Insolvency. Not published.Stage: Liquidating Chapter 11 plan approved by the bankruptcy court on 20 September 2024S9S8.
Responses on record
- Do Kwon, 11 December 2025, on The US Department of Justice said Do Kwon pleaded guilty to fraud and was sentenced on 11 ...
At sentencing his lawyers asked for five years and Kwon told the court he accepted blame for the losses.S6
- Terraform Labs and Do Kwon, 30 October 2023, on In October 2023 Terraform Labs and Do Kwon told the court that the SEC had not proven the ...
Their lawyers argued the SEC had not proven the defendants did anything wrong and asked the judge to rule without trial.S7
Revision history
- Profile and 4 assessments first published. Records checked to 25 October 2026.
Source records
- S1Tier A Statement on Jury's Verdict in Trial of Terraform Labs PTE Ltd. and Do KwonUS Securities and Exchange Commission (Gurbir S. Grewal, Division of Enforcement). Regulator press release. 5 April 2024.Supports the civil jury verdict of liability for fraud. It is a statement on a civil verdict, not a criminal conviction.
- S2Tier A Terraform and Kwon to Pay $4.5 Billion Following Fraud VerdictUS Securities and Exchange Commission. Regulator press release. 13 June 2024.Supports the settlement figures and repeats the jury finding. The settlement resolves the civil case.
- S9Tier A SEC v. Terraform Labs PTE, Ltd. and Do Hyeong Kwon, No. 23-cv-1346-JSR (S.D.N.Y.)US Securities and Exchange Commission. Regulator press release. 18 September 2025.SEC distributions page. Supports the case number, the 12 June 2024 consent judgment and the 20 September 2024 Chapter 11 plan approval. Says payments run through the bankruptcy estate.
- S3Tier A Do Kwon Pleads Guilty To FraudUS Department of Justice, US Attorney's Office, Southern District of New York. Government press release. 12 August 2025.Supports the guilty plea, the counts and the scheme description. The scheme detail beyond the plea remains prosecution allegation.
- S4Tier A Crypto-Enabled Fraudster Sentenced For Orchestrating $40 Billion FraudUS Department of Justice, US Attorney's Office, Southern District of New York. Government press release. 11 December 2025.Supports the 15 year sentence, the forfeiture of over US$19 million and the counts. This is the conviction record.
- S8Tier C Terraform Labs gets sign off from US bankruptcy judge to begin winding down: ReutersThe Block (Sarah Wynn). Press report. 19 September 2024.Supports the bankruptcy court approval of the wind down. It does not confirm final dissolution.
- S6Tier C Do Kwon Sentenced to 15 Years in Prison Over $40 Billion Terra Crypto CollapseDecrypt (Andre Beganski). Press report. 11 December 2025.Used for the prosecution and defence sentencing positions and the judge's remarks. Press colour, not a primary record.
- S7Tier C Do Kwon and Terraform Labs' lawyers urge judge to nix SEC's allegationsThe Block (Sarah Wynn). Press report. 30 October 2023.Origin of the pre trial denial by the defence. It reports a court filing, it does not establish the filing's merit.
- S5Tier A Do Kwon Extradited To The United States From Montenegro To Face Charges Relating To Fraud Resulting In $40 Billion In LossesUS Department of Justice, US Attorney's Office, Southern District of New York. Government press release. 2 January 2025.Supports the extradition date, the nine count indictment and the 130 year maximum. An indictment is an allegation.