US prosecutors have requested a 12-year prison sentence for Do Kwon

US federal prosecutors have asked a judge to sentence Terraform Labs co-founder Do Kwon to 12 years in prison. A sentencing hearing is scheduled for next week, and the case has captured the attention of both investors and the public.

Charges Against Do Kwon

In a court document filed on November 5 in the US District Court for the Southern District of New York, prosecutors requested that Kwon be sentenced "to 12 years in prison and complete the forfeiture of his criminal proceeds." This request comes approximately four months after Kwon pleaded guilty to two counts of wire fraud and conspiracy to commit wire fraud.

Prosecutors allege that in a short period of time, Do Kwon has incurred losses that dwarf those of companies such as FTX, Celsius, and OneCoin combined. The collapse of Terraform, they say, triggered a cascade of crises in cryptocurrency markets and was one of the factors leading to what later became known as the "crypto winter."

Charges and Extradition

Kwon, whose sentencing is scheduled for December 5, was indicted by US authorities in March 2023. The charges include:

- securities fraud,
- market manipulation,
- money laundering,
- wire fraud.

All of these charges are related to his role in Terraform. After the project's collapse in 2022, Kwon's whereabouts were initially unknown. Montenegrin authorities arrested him on charges unrelated to his role in the company, and he was later extradited to the United States.

Market Reaction

Following the publication of the prosecutor's recommendation regarding the sentence, the price of Terra Classic's native token (LUNC) rose nearly 70% in the previous 24 hours. However, it's worth noting that the asset reached an all-time high before the ecosystem crash in May 2022, and its current state raises many questions among investors.

In Conclusion

The situation involving Do Kwon and his role in the collapse of Terraform Labs highlights the importance of adhering to regulations and standards in the rapidly evolving world of cryptocurrency. The court's decision is expected to set an important precedent for future cases involving fraud in this space. Investors and experts are closely monitoring these developments, as they could have a significant impact on the cryptocurrency market as a whole.