During the Trump administration, U.S. federal prosecutors reserved the right to seek up to a 12-year prison sentence for Do Kwon, founder of the Terra cryptocurrency project, as part of a plea deal reached in August. The Department of Justice is now requesting the maximum sentence amid intensified crackdowns on fraud and financial misconduct in the crypto market. Do Kwon created Terra and its associated stablecoin, Luna, whose sudden and dramatic price collapse shook the global crypto market, causing significant investor losses and highlighting the need for stricter financial regulations. U.S. authorities have treated the case as financial fraud and initiated legal proceedings accordingly. The DOJ’s push for the maximum penalty reflects a tough stance against crypto-related fraud, similar to the harsh sentencing recently imposed on Sam Bankman-Fried, another prominent crypto entrepreneur convicted of financial fraud. The rapid growth of crypto investments alongside rising fraud incidents has drawn increased attention from global financial institutions and governments, prompting efforts to strengthen legislation and oversight to protect investors and ensure transparency in the financial system. The court’s decision on this request will be closely watched for its potential impact on the crypto market, especially as many countries are tightening crypto regulations to reduce investment risks.
Source: decrypt
