In the crypto ecosystem, certain files come back like boomerangs. That of Do Kwon, founder of Terraform Labs, is one of those cases that leaves a lasting mark. As his appearance approaches, American prosecutors are calling for a severe sentence: twelve years in prison. A request which, beyond the symbol, recalls the shock wave caused by the collapse of the Terra ecosystem.
In brief
- US prosecutors seek 12 years in prison for Do Kwon after Terra's collapse.
- They believe his actions triggered a major crisis in the crypto ecosystem.
- Kwon faces legal risks in both the United States and South Korea.
A sentencing recommendation that hits hard for Terraform
American prosecutors did not take half measures. In a file sent to the New York federal court, they demand twelve years in prison and the confiscation of profits deemed criminal. In their eyes, the damage caused by Do Kwon exceeds that caused by infamous figures like Sam Bankman-Fried, Alex Mashinsky and Karl Sebastian Greenwood, while he acknowledges the facts and asks for a reduced sentence. A heavy, almost provocative comparison, which illustrates the scale of the fiasco.
This severity doesn't come out of nowhere. Since his conviction on two charges, electronic fraud and conspiracy, the legal framework has tightened. Prosecutors point out that Terra's collapse in 2022 set off a chain reaction. A real groundswell which contributed to ushering in the famous “Crypto Winter”, a freezing period for the entire sector.
This dynamic, still palpable today, has left a deep scar. The prosecution's argument is based precisely on this idea: Kwon not only deceived investors, he weakened an entire crypto market already shaken by a succession of scandals.
A legal journey that is already complex and far from over
This dynamic, still palpable today, has left a deep scar. The prosecution's argument is based precisely on this idea: Kwon not only deceived investors, he weakened an entire crypto and terraform market already shaken by a succession of scandals.
Because another threat looms: South Korean justice. Prosecutors in his country are reportedly asking for a sentence of up to forty years. A prospect that his legal team is raising with the American judge to obtain a more measured sanction.
In short: no matter what happens in the United States, Kwon probably won't find his freedom anytime soon. Even if each party offers its own recommendation, the final arbiter remains the judge. And the range of possibilities remains wide: from a few years to several decades.
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