TerraUSD creator sentenced to 15 years in prison over $40bn crash

Saturday, December 13, 2025 -The creator of TerraUSD has been sentenced to 15 years in prison following the collapse of the $40 billion stablecoin, one of the largest cryptocurrency failures in history. 

The court found him guilty of fraud and other financial crimes, holding him responsible for the massive losses that affected thousands of investors and shook global crypto markets. Judges emphasized the severity of the breach of trust and its far-reaching financial consequences.

The sentencing sends a strong message to the cryptocurrency industry about regulatory accountability and investor protection. Authorities noted that the collapse not only wiped out billions in digital assets but also undermined confidence in stablecoins and decentralized finance platforms. 

Investors, many of whom suffered significant personal and institutional losses, are now seeking restitution and closer scrutiny of crypto operations.

While appeals may follow, the ruling underscores the increasing legal scrutiny facing crypto innovators and platforms. 

Regulators and financial watchdogs are expected to continue cracking down on misleading practices, ensuring that similar catastrophic failures are less likely to occur in the future. The case marks a pivotal moment for cryptocurrency governance and investor protection worldwide.