US prosecutors have requested a 12-year prison sentence for Do Kwon, founder of the Terra Form project, in a cryptocurrency fraud case. The collapse of Do Kwon’s project caused financial losses that exceeded the combined damages from the failures of Sam Bankman-Fried’s FTX, Celsius, and OneCoin. Terra Form was a decentralized finance (DeFi) protocol that aimed to revolutionize the market with its own cryptocurrency and stablecoin. During its peak popularity, it raised billions of dollars from investors, but its sudden collapse triggered massive turmoil in the market, resulting in severe financial losses for investors and damaging the reputation of the crypto industry. This case represents a stringent legal response to fraud and mismanagement in the cryptocurrency sector. US authorities allege that Do Kwon deliberately misled investors, undermining market confidence. Do Kwon denies these charges, and the trial is ongoing. Such incidents have prompted regulators to enforce stricter rules to protect investor rights. If convicted, Do Kwon’s sentencing would mark a significant step in defining legal boundaries and enhancing protections within the cryptocurrency industry.
Source: coindesk
