Do Kwon To Face 12 Years in Jail After Terra Crash, Sentencing on Dec 11
The post Do Kwon To Face 12 Years in Jail After Terra Crash, Sentencing on Dec 11 appeared first on Coinpedia Fintech News
South Korean cryptocurrency mogul Do Kwon is about to face 12 years in prison for his role in the 2022 TerraUSD collapse, a “colossal” fraud that triggered $40 billion loss in users funds. Sentencing is scheduled for Dec. 11.
Crypto supporters are now wondering why such a harsh punishment, and what Do Kwon’s team says in his defense?
Do Kwon To Face 12-Year Prison TermOn December 4, a new filing was sent to Judge Paul Engelmayer in New York, where the government explained why it believes Do Kwon deserves such a long prison sentence.
Prosecutors explained that Kwon kept saying TerraUSD (UST) was safe and would always stay at $1, giving false hope to the investors.
But in May 2022, UST suddenly collapsed, and billions of dollars vanished almost overnight. They say this crash didn’t just hurt Terra investors. It triggered big problems across the whole crypto market, even contributing to failures that later connected to huge disasters like FTX.
UPDATE 