Do Kwon, co-founder of Terraform Labs, has requested a five-year prison sentence after admitting to fraudulent activities related to the collapse of TerraUSD and LUNA. He pleaded guilty to conspiracy and wire fraud charges in August 2025 and acknowledged misleading investors about TerraUSD’s supposed $1 stability under the “Terra Protocol.” Kwon’s actions allegedly manipulated the value of the stablecoin, leading to its dramatic devaluation and a loss of $40 billion across global crypto markets. Prosecutors allege that he secretly used large purchases of UST to bolster its price, concealing these activities from investors who were left with false assurances about the system’s stability.