🚨 Do Kwon Seeks Lighter Sentence as U.S. Prosecutors Brand Terra Collapse a Major Crypto Fraud
Terraform Labs co-founder Do Kwon is asking a U.S. court to significantly reduce his potential prison time, pushing for a five-year sentence — despite prosecutors insisting his conduct ranks among the most destructive frauds in crypto history.
In a recent court filing highlighted by Bloomberg, federal prosecutors accuse Kwon of misleading investors, triggering a devastating collapse that rippled across the entire digital asset market.
The dramatic failure of TerraUSD (UST) and LUNA erased billions in value, shook confidence in algorithmic stablecoins, and played a role in the unraveling of multiple crypto firms across the industry.
🌐 Prosecution: “The Damage Was Enormous”
According to prosecutors, the downfall of Terraform Labs was “colossal in scale.” Within days, huge sums vanished, retail investors were left with catastrophic losses, and trust in emerging crypto infrastructure suffered a global blow.
Given the scope of the harm, the government is urging a 12-year sentence, arguing that the punishment must reflect the severity and systemic impact of the collapse.
⚖️ Defense Argument: “Punishment Has Already Begun”
Kwon’s legal team sees the situation very differently.
They point to the nearly three years he has already spent in custody, including what they describe as harsh detention conditions in Montenegro, along with serious damage to his physical and mental health.
His attorneys claim a five-year sentence would be more than adequate, calling the prosecution’s request excessive and disproportionate under the circumstances.
🔎 Why This Case Matters
Kwon’s sentencing isn’t just about one individual.
The decision could influence:
how severely U.S. courts punish large-scale crypto collapses
how responsibility is assigned when regulatory frameworks are unclear
whether time served, personal hardship, or claimed remorse meaningfully reduce sentences in high-profile crypto cases
Whatever the outcome,the ruling is likely to shape how future crypto fraud cases are handled .
Why you should trade or avoid ?
in my opinion, next few days Terra linked coins like Luna , Lunc and Ustc can pump much more ! But in longer time frame , still there is no hope ! Share your thoughts as well ?
