Do Kwon Should Get 12 Years for ‘Colossal’ Crypto Fraud, US Says

Terraform Labs Pte. co-founder Do Kwon should be sentenced to 12 years in prison for the fraud that led to the TerraUSD stablecoin’s $40 billion collapse in 2022, US prosecutors said.

Calling Kwon’s fraud “colossal in scope,” the government told a New York federal judge in a late Thursday court filing that the crime merited a tough sentence. Prosecutors pointed out that Kwon’s lies to customers triggered a series of cascading crises in the crypto world, including the collapse of Sam Bankman-Fried’s FTX.

Kwon will be sentenced by US District Judge Paul Engelmayer on Dec. 11.

The sentencing ...