Do Kwon Deserves 12-Year Prison Sentence For His Role In $40B Terra-Luna Crash, US Prosecutors Say ⋆ ZyCrypto
The post Do Kwon Deserves 12-Year Prison Sentence For His Role In $40B Terra-Luna Crash, US Prosecutors Say ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
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  Terraform Labs founder Do Kwon should serve at least 12 years behind bars for his role in the spectacular $40 billion implosion of the Terra ecosystem, U.S. federal prosecutors said on Thursday. While Kwon’s team recently requested a 5-year sentence, U.S. officials contended that the massive scope of his crimes cries out for this lengthy prison sentence to discourage any future similar behavior. Prosecutors Seek Maximum 12-Year Sentence For Kwon Though Do Kwon faced up to 25 years in federal prison for his crimes, prosecutors agreed in August that they would push for up to 12 years as part of a plea deal reached with the ex-crypto mogul, where he pleaded guilty to conspiracy to commit fraud and wire fraud. In a sentencing submission filed on Thursday to the U.S. District Judge Paul Engelmayer for the Southern District of New York, DOJ attorneys argued that Kwon deserves a harsh sentence to avoid “unwarranted sentencing disparities” with other, similar cases — namely, that of FTX founder Sam Bankman-Fried. In a 2023 jury trial, Bankman-Fried was convicted on seven counts of fraud and conspiracy for his role in the collapse of his $32 billion crypto empire. A judge later sentenced the former billionaire crypto wunderkind to 25 years in prison. Advertisement
  “Judge Kaplan imposed a sentence of 25 years on Bankman-Fried, who, like Kwon, perpetrated a fraud of staggering proportions in his twenties and then attributed his brazen criminal conduct in part to youth and inexperience,” the prosecutors postulated. The prosecutors also slammed Kwon’s legal team for claiming the Terra founder should receive a “far shorter sentence” than Celsius founder Alex Mashinsky, who was sentenced to 12 years in prison earlier this year for multi-billion-dollar fraud. The Terra-Luna Implosion Kwon, a 34-year-old South Korean citizen, found…
Filed under: News - @ December 6, 2025 6:22 pm