đ¨ Do Kwon Fights for Lighter Sentence as Prosecutors Brand Terra Collapse a âHistoric Crypto Fraudâ
Terraform Labs co-founder Do Kwon is pushing hard for leniency, asking the court to limit his punishment to five years in prison â even as U.S. prosecutors paint him as the mastermind behind one of the most destructive financial disasters in cryptoâs history.
A new court filing, highlighted by Bloomberg, reveals that prosecutors blame Kwonâs âmisleading assurancesâ for triggering a meltdown that rippled across the entire digital asset ecosystem.
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đ Prosecutors: âDamage of Unprecedented Scaleâ
According to the filing, the collapse of TerraUSD (USTC) and LUNA/LUNC was nothing short of catastrophic:
Billions of dollars vanished within days
Retail investors worldwide were wiped out
Major crypto companies crumbled under the fallout
Trust in algorithmic stablecoins was obliterated
Prosecutors argue that chaos of this magnitude demands accountability â backing their push for a 12-year prison term to match the scale of the destruction.
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âď¸ Defense: âKwon Has Already Endured Enoughâ
Kwonâs lawyers, however, tell a very different story.
They insist that he has already paid a massive personal price, citing:
Nearly three years behind bars
Harsh confinement conditions in Montenegro
Severe deterioration in his physical and mental health
For them, a five-year sentence is more than adequate â and anything beyond that is âfar beyond what justice requires.â
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đ Why This Sentencing Matters
What happens next wonât just decide Do Kwonâs future.
It could reshape the entire legal landscape of crypto:
How tough the U.S. will be on large-scale crypto fraud
How courts balance global regulatory failures
Whether remorse, cooperation, or time already served can soften penalties in high-profile cases
The verdict will send a message â not just to Kwon, but to the entire industry.
