Do Kwon Faces Up to 12 Years for TerraUSD Collapse as Sentencing Nears
The post Do Kwon Faces Up to 12 Years for TerraUSD Collapse as Sentencing Nears appeared on BitcoinEthereumNews.com.
Do Kwon faces a potential 12-year prison sentence for his role in the 2022 TerraUSD collapse that erased $40 billion in value. U.S. prosecutors seek the maximum under his plea deal, while Kwon’s defense requests only five years, highlighting the fraud charges he pleaded guilty to. U.S. prosecutors demand 12 years for Do Kwon due to the severe impact of the TerraUSD failure on investors worldwide. Kwon’s legal team counters with a request for five years, citing his nearly three years already in detention. The collapse of TerraUSD and Luna led to over $40 billion in losses, triggering global regulatory scrutiny and investor lawsuits. Discover the latest on Do Kwon sentencing in the TerraUSD fraud case. Prosecutors push for 12 years amid $40B collapse fallout—stay informed on key developments and implications for crypto regulation. What is the expected sentence for Do Kwon in the TerraUSD case? Do Kwon sentencing is set for December 11, 2025, before U.S. District Judge Paul Engelmayer in Manhattan, where prosecutors recommend a 12-year prison term. This stems from Kwon’s guilty plea to conspiracy charges involving commodities fraud, securities fraud, wire fraud, and a separate wire-fraud count related to the 2022 TerraUSD collapse. The plea deal caps the maximum at 12 years, down from potential 25 years on original charges, balancing the severity of the $40 billion market value wipeout with Kwon’s cooperation. How did the TerraUSD collapse unfold and impact the crypto market? The TerraUSD (UST) stablecoin, designed by Terraform Labs co-founder Do Kwon, lost its $1 peg in May 2022, initiating a rapid devaluation that affected the entire ecosystem. This event triggered a “death spiral” where UST holders redeemed for Luna tokens, flooding the market and causing Luna’s price to plummet over 99% in days. According to data from market analyses at the time,…
