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Prosecutors Seek 12 Years for Terra Founder Do Kwon
Prosecutors cite $40 billion losses and global market disruption in demanding 12-year sentence for Do Kwon, contrasting defense's 5-year request citing time served.
- On December 11, U.S. federal prosecutors will seek a 12-year sentence for Do Kwon, founder of Terraform Labs, at Manhattan federal court following his guilty plea earlier this year.
- The Terraform ecosystem once topped over $50 billion, with UST using an algorithmic LUNA-linked mechanism rather than tangible assets, while court filings revealed backdoor agreements and deceptive metrics, prosecutors said.
- Do Kwon admitted to defrauding investors and manipulating markets, while prosecutors said he fled, blamed others, and resisted extradition, warranting a substantial sentence, prosecutors argued.
- Kwon's defense has asked the court for a five-year term, citing time served in Montenegro and potential prosecution in South Korea, while U.S. prosecutors said only a lengthy sentence would deter similar fraud.
- Prosecutors say the crash helped trigger the 2022 Crypto Winter, noting losses tied to Terraform surpassed other major collapses and compared the case to Sam Bankman-Fried and Alex Mashinsky.
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Bitcoin turns negative for the week as it fails to hold above $90,000: CNBC Crypto World
On today's episode of CNBC Crypto World, bitcoin and other major cryptocurrencies turn negative to closer out the week. Plus, prosecutors recommend a 12-year prison sentence for Terraform Labs founder Do Kwon. And Summer Mersinger, CEO of the Blockchain Association, discusses the group's upcoming policy summit in Washington, D.C.
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Coverage Details
Total News Sources33
Leaning Left1Leaning Right0Center5Last UpdatedBias Distribution83% Center
Bias Distribution
- 83% of the sources are Center
83% Center
L 17%
C 83%
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