Do Kwon should receive 12 years for colossal crypto fraud, US prosecutors say
Terraform Labs co-founder Do Kwon is recommended to receive a 12-year prison sentence for fraud related to the collapse of the TerraUSD stablecoin, which erased $40 billion in value in 2022, according to US prosecutors.
Source Bloomberg
In a motion filed with the New York federal court, the government described Kwon’s fraud as “colossal in scope” and urged a severe punishment. Prosecutors highlighted that Kwon’s deceit triggered cascading crises within the cryptocurrency sector, including the downfall of Sam Bankman-Fried’s FTX exchange. US District Judge Paul Engelmayer is scheduled to pass sentence on December 11.
This case stands out as a landmark prosecution in the fight against crypto-related crimes and may set an important precedent for future prosecutions.
