US Prosecutors Seek 12-Year Sentence for Terraform Founder Do Kwon in Crypto Fraud Case
U.S. federal prosecutors are seeking a 12-year prison sentence for Do Kwon, the founder of Terraform Labs, the firm behind the algorithmic stablecoin UST that imploded spectacularly more than three years ago.
The request, filed on Thursday to the judge of Southern District of New York, comes after Kwon pleaded guilty earlier this year. He admitted to defrauding investors and manipulating the crypto markets through a series of false claims about his company’s blockchain products.
While Kwon’s defense team requested a five-year sentence, citing time served in Montenegro and potential prosecution in South Korea, U.S. officials argued that only a lengthy prison term would reflect the scale of the fraud and deter similar conduct.
“The…
