Terra (LUNA) Fraudster Do Kwon’s Proposed Prison Sentence Revealed – A Hard-to-Believe Decision
Terraform Labs co-founder Do Kwon should be sentenced to 12 years in prison for the fraud that resulted in the collapse of LUNA and the TerraUSD stablecoin in 2022, causing a total loss of $40 billion, US prosecutors have requested.
Prosecutors said in a petition filed in New York federal court that Kwon's crime was “colossal in scope.”
According to prosecutors, Kwon's misinformation to investors not only triggered the collapse of the Terra ecosystem but also triggered a cascade of crises throughout the cryptocurrency market, with widespread impact extending to the collapse of Sam Bankman-Fried's FTX exchange.
Do Kwon's sentence will be announced by US District Judge Paul Engelmayer on December 11.
The developments in Kwon's case come amid a significant easing of cryptocurrency sanctions by the Trump administration. President Donald Trump granted clemency to Binance founder Changpeng Zhao on October 23.
Kwon, 34, requested a five-year prison sentence in his own court filing last week. He pleaded guilty in August to conspiracy and wire fraud in a deal in which prosecutors agreed to seek the maximum 12 years.
As part of the settlement, Kwon agreed to hand over $19.3 million in assets, as well as various properties. Prosecutors said they would not seek individual restitution of the $40 billion in losses because the losses were complex and involved millions of investors.
Do Kwon was charged in both the US and South Korea, and a lengthy extradition process ensued between the two countries after he was arrested in Montenegro in 2023 while traveling with a fake passport. Kwon was extradited to the US in January after serving nearly two years in prison in the Balkan country for forging documents.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
ICP Price Jumps 30%: Exploring the Driving Forces and Long-Term Investment Outlook
- ICP token surged 30% in Nov 2025 to $4.71, driven by ICP 2.0 upgrades and institutional partnerships with Microsoft , Google, and SWIFT. - Price retreated to $3.50 by Dec 2025 amid waning AI hype, macroeconomic pressures, and speculative trading volatility. - NVT ratio and DCF analyses highlight valuation challenges, with optimistic 2026 price projections ($11.15–$31.89) contingent on real-world adoption and institutional traction. - Market dynamics reveal a duality: innovative infrastructure potential v
AI and Financial Stability in 2025: The Role of ICP Caffeine AI in Transforming Risk Management Amid Market Uncertainty
- ICP Caffeine AI, DFINITY's blockchain-AI platform, reduces AI inference costs by 20-40% while enabling real-time financial risk analysis through hybrid cloud-decentralized infrastructure. - AI-driven risk tools outperform traditional VaR models by 10% in predictive accuracy, achieving 60% efficiency gains for institutions through real-time data processing and regulatory integration. - Despite $237B TVL and 56% ICP price growth, the platform faces challenges including 22.4% dApp activity decline, token vo
Why is Internet Computer (ICP) Experiencing Rapid Growth in Late 2025: An In-Depth Examination of Blockchain Expansion and the Evolution of Decentralized Web Systems
- Internet Computer Protocol (ICP) surges in late 2025 due to protocol upgrades, institutional adoption, and alignment with AI-driven finance trends. - Chain Fusion enables cross-chain interoperability with Bitcoin/Ethereum, while Caffeine AI democratizes dApp development via natural language prompts. - Institutional adoption grows with 2,000+ new developers, $1.14B TVL, and zero-fee transactions attracting financial institutions seeking cost-efficient solutions. - ICP's hybrid cloud/Web3 model addresses e
Grasping the Factors Leading to Solana's Recent 50% Decline in Value
- Solana's 50% price drop in early 2025 stemmed from token unlocks, declining network activity, and the Libra meme token collapse. - Network metrics like active addresses (-40%) and TVL ($2.87B loss) revealed weakening ecosystem trust and liquidity. - Broader crypto market declines (Bitcoin to $86K) and macroeconomic risks accelerated Solana's sell-off amid rising trade war fears. - $500M liquidity migration to Ethereum and institutional ETF launches signaled cautious optimism despite ongoing volatility. -
Trending news
MoreCrypto prices
More
