US prosecutors request 12 years in prison for Terraform’s Do Kwon

CointelegraphFriday, December 5, 2025 at 3:43:25 PM
US prosecutors request 12 years in prison for Terraform’s Do Kwon
  • US prosecutors have requested a 12-year prison sentence for Do Kwon, co-founder of Terraform Labs, citing that his actions led to greater financial losses than those caused by other high-profile figures in the cryptocurrency sector. This recommendation comes as Kwon faces legal repercussions for his role in the TerraUSD crash, which resulted in approximately $40 billion in losses.
  • The outcome of this case is significant for Do Kwon, as it not only impacts his personal freedom but also reflects on the accountability of leaders in the cryptocurrency industry. Kwon has argued for a reduced sentence of five years, emphasizing time served and asset forfeitures as mitigating factors.
  • This situation highlights ongoing tensions within the cryptocurrency landscape, where regulatory scrutiny is intensifying. The contrasting perspectives on Kwon's culpability and the broader implications for the crypto market underscore a critical debate about governance, risk management, and the ethical responsibilities of cryptocurrency founders.
— via World Pulse Now AI Editorial System

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U.S. Prosecutors Seek 12-Year Sentence for Terraform Founder Do Kwon in Crypto Fraud Case
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U.S. prosecutors are seeking a 12-year prison sentence for Do Kwon, the founder of Terraform Labs, in a case linked to a cryptocurrency fraud that resulted in losses exceeding those from other high-profile collapses, including FTX and OneCoin. The prosecution argues that Kwon's actions led to significant financial devastation, particularly with the TerraUSD crash, which alone accounted for approximately $40 billion in losses.
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