US prosecutors have recommended a 12-year prison sentence for Do Kwon, the founder of the cryptocurrency project Terra, in connection with fraud allegations related to the sudden collapse of TerraUSD (UST) in 2022. The collapse caused approximately $40 billion in financial losses. A US federal judge, Paul Engelmayer, is scheduled to deliver the verdict on December 11. TerraUSD was a stablecoin designed to maintain parity with the US dollar to provide stability for crypto market users. However, in 2022, extreme market volatility and technical issues led to a sharp decline in its value, resulting in significant investor losses and undermining confidence in the crypto market. This incident also prompted calls from regulatory bodies for increased oversight of the sector. Do Kwon faces accusations of fraud that allegedly caused investor harm. The case is seen as pivotal in defining legal and ethical boundaries within the cryptocurrency industry. Previous legal actions against crypto founders and companies over financial misconduct have raised questions about the industry’s transparency and accountability. While the verdict is pending, stricter regulations are anticipated to protect investors’ rights and prevent future financial misconduct in the crypto market.
Source: binance
