Terraform Founder Do Kwon Faces 12-Year US Prosecution, LUNA Token Surges Unexpectedly

As reported by 528btc, Terraform Labs co-founder Do Kwon is facing a 12-year federal prison sentence recommendation from US prosecutors following his fraud conviction. The U.S. authorities claim his actions caused unprecedented market losses, triggering the so-called 'crypto winter.' Kwon disappeared after the 2022 collapse of Terra, was later arrested in Montenegro, and extradited to the U.S. to face fraud, market manipulation, and money laundering charges. His defense has requested a lighter sentence, warning that a U.S. conviction may only be the beginning, as South Korean authorities have also initiated criminal proceedings against him. Surprisingly, the LUNA token, a remnant of the collapsed Terra ecosystem, surged over 40% following the sentencing recommendation, trading at around $0.10, far below its $19 peak. The final sentence remains uncertain, as the presiding judge may impose a term significantly different from the prosecution or defense's suggestions.