U.S. Prosecutors Seek 12-Year Sentence for Terraform Founder Do Kwon in Crypto Fraud Case
NegativeCryptocurrency
- 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.
- This development is critical for Kwon, as he faces severe legal repercussions in both the U.S. and South Korea, where he is also contending with a potential 40-year sentence for separate charges. Kwon has requested that his U.S. sentence be limited to five years, citing time served and asset forfeitures as mitigating factors.
- The case against Kwon highlights ongoing concerns within the cryptocurrency sector regarding regulatory oversight and accountability, especially in light of previous scandals involving other major figures. The contrasting legal outcomes faced by Kwon and others in the industry reflect a broader debate about the need for stricter regulations and the implications of cryptocurrency fraud on investor trust and market stability.
— via World Pulse Now AI Editorial System
