Do Kwon Faces 12 Years: US Prosecutors Demand Prison for Terraform Labs Founder in LUNA Crypto Fraud Case

US federal prosecutors have formally recommended a 12-year prison sentence for Do Kwon, the co-founder and former CEO of Terraform Labs. The sentencing request comes after Kwon was found liable for a massive crypto fraud scheme linked to the catastrophic collapse of the TerraUSD (UST) stablecoin and its sister token LUNA in May 2022. The prosecutors' memorandum argues that the staggering losses inflicted on investors, estimated in the tens of billions, warrant a severe penalty. This case represents one of the most significant legal actions following the 2022 crypto market downturn. The final sentencing decision rests with a US district judge, setting a potential precedent for regulatory enforcement in the cryptocurrency industry.