ftx

U.S. Prosecutors Seek 12-Year Prison for Do Kwon Over Terra-Luna Fraud
U.S. federal prosecutors are seeking a 12-year prison sentence for Terraform Labs founder Do Kwon, arguing that his role in the multibillion-dollar Terra–$LUNA crash triggered one of the most damaging events in crypto history and helped set off the prolonged crypto winter. The request was filed Thursday with the U.S. District Court for the Southern District of New York, where the co-founder will be sentenced on December 11.

Source: Wu_Blockchain
In a sentencing submission, prosecutors said Kwon’s “year-long-fraud” which erased more than $40 billion in market value, warrants a lengthy prison term. They argue Do Kwon misled millions of investors about the safety, structure, and stability of Terraform’s algorithmic stablecoin UST and its sister token Luna.
Investors believed TerraUST was stable and decentralized, but the system relied on hidden trading arrangements, deceptive metrics, and undisclosed support mechanism that masked the fragility of the UST-Luna balancing model.
The filing asks for a little over $19 million to be seized. Prosecutors say they won’t seek restitution because it’s too difficult to calculate losses for millions of victims and because many claims overlap with ongoing crypto bankruptcy cases.
Prosecutors Cite Losses Greater Than FTX, Celsius, OneCoin Combined
Prosecutors also highlighted that investor losses from the Terraform collapse exceeded those of FTX, Celsius, and OneCoin combined. 
FTX: Collapsed in Nov 2022 with $8–$10B missing from over 1M users; founder Sam Bankman-Fried convicted of fraud.
Celsius: Bankrupt in July 2022 owing $4.7B; managed $25B at peak; ex-CEO Alex Mashinsky charged with fraud.
OneCoin: Ponzi scheme (2014–2017) stole $4B+ from 3M+ victims; leader Ruja Ignatova still missing.
Sam Bankman-Fried is currently serving 25 years, while Celsius founder Alex Mashinsky received 12 years for fraud, benchmarks prosecutors say support a tough sentence.
They added that the Terra-Luna implosion was a catalyst for the cryptocurrency market, contributing heavily to the 2022 downturn. The Terraform platform, valued over $50B at its peak, triggered a chain reaction that damaged hedge funds, lenders, and retail investors worldwide.
Charges Against Do Kwon: Defense Asks for Five Years
Do Kwon was charged in March 2023 with wire fraud, securities and commodities fraud, conspiracy to commit fraud, market manipulation, and money laundering. He later pleaded guilty to wire fraud and conspiracy to defraud. 
Separately, in April 2024, a jury found the co-founder and Terraform Labs liable for civil fraud in a case brought by the Securities and Exchange Commission (SEC), which argued over misrepresentation of UST’s stability and Terraform’s blockchain products. 
Against these charges, the defense team has requested a sentence of five years, arguing that third-party trading firms exploited UST vulnerabilities and accelerated the collapse. They referenced academic research and Chainalysis data to support their claim. The defence also cited co-founder's time in custody in Montenegro, where he was arrested in 2023 for travelling with forged documents while evading both U.S. and South Korean warrants. 
After months of extradition disputes, Do Kwon was sent to the USA in December 2024.
Jay Clayton Oversees Filing: Eyes Are On December 11
The submission was signed by Jay Clayton, the U.S. Attorney for the Southern District of New York and former SEC Chair. He said Do Kwon’s actions – fleeing, giving misleading statements, and fighting extradition, show why a tough sentence is necessary.
Now, all eyes in the crypto sector turn to December 11, when Do Kwon will face sentencing in Manhattan federal court – poised to become of the most important and impactful ruling in crypto regulation after the FTX collapse. 

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#SEC #DoKwon #FTX #crypto #CryptoNews

The crypto market is facing renewed instability after crypto exchange FTX filed for bankruptcy, triggering widespread concern across centralized trading platforms. At the same time, Ethereum founder Vitalik Buterin confirmed a major protocol upgrade scheduled for December 2023, which aims to improve scalability and strengthen network security.
The simultaneous collapse of a major exchange and the announcement of an important Ethereum update has amplified volatility across the market, with traders re-evaluating risk and long-term expectations.
Ethereum’s December Upgrade Aims to Improve Scalability
Vitalik Buterin announced that Ethereum’s next upgrade will focus on enhancing scalability and security efficiency, addressing ongoing congestion and performance issues. Industry analysts expect the change to significantly improve the network's capabilities, potentially impacting multiple DeFi and Web3 sectors.
If successful, the upgrade may support Ethereum’s long-term goal of scaling global decentralized applications without compromising security.
Bitcoin Price Reacts to Market Stress
According to CoinMarketCap, Bitcoin is currently priced at $89,319.88 with a global market capitalization of $1.78 trillion. BTC declined 3.32% in the past 24 hours, extending its 90-day loss to 19.22%, while its fully diluted market cap sits at $1.87 trillion. Daily trading volume has surged to $62.68 billion, reflecting heightened uncertainty across major exchanges following the FTX collapse.
Regulators Scrutinize FTX’s Activities
The U.S. SEC and CFTC have already begun reviewing FTX’s operations for potential regulatory breaches. Rising calls for stronger oversight have emerged from industry leaders, who argue that investor protection must be prioritized to restore market stability.
Jane Smith, Lead Analyst at Market Insights, commented,“The recent downturn indicates a broader correction, and it’s essential for investors to reassess risk management strategies.”
Withdrawals Surge as Trust in Centralized Exchanges Declines
Following the bankruptcy announcement, several crypto exchanges reported increased withdrawal activity as users attempted to secure their assets. The resignation of Samuel Bankman-Fried, former CEO of FTX, has added further uncertainty. Stakeholders are now awaiting clear updates regarding the platform’s restructuring process and future operations.
The combination of FTX’s collapse and Ethereum’s upcoming upgrade is expected to shape near-term sentiment, potentially influencing both regulatory discussions and the direction of the broader crypto market.
The post appeared first on CryptosNewss.com
#FTX #bitcoin #Ethereum $FTT $BTC $ETH

Sam Bankman đi nghỉ mát 25 năm thì Do Kwon ít nhất cũng phải được một nửa chứ anh em nhỉ? 😁
Các công tố viên cho biết: “Sự sụp đổ của thị trường Terraform đã gây ra một loạt các cuộc khủng hoảng lan rộng trên các thị trường tiền điện tử và góp phần tạo nên cái mà sau này được gọi là 'Mùa đông tiền điện tử'.
Tổn thất liên quan đến sự cố Terraform đã vượt qua tổn thất do sự sụp đổ của #FTX của Sam Bankman-Fried , #Celsius của Alex Mashinky và #OneCoin cộng lại.

🧨 Když padla burza, padla i důvěra

Listopad 2022 přinesl největší otřes kryptosvěta od dob Mt.Gox. Kryptoburza FTX, kdysi vzor transparentnosti a “bezpečné cesty pro Evropu”, se zhroutila během několika dní. Zákazníci po celém kontinentu zjistili, že jejich prostředky zmizely – a s nimi i iluze, že „velká burza = jistota“.

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🏦 Proč měla FTX Evropu ráda?

Evropská unie byla pro FTX strategickým cílem:

Regulační reputace: působení v EU mělo značce dodat důvěryhodnost

FTX Europe / FTX EU: pobočka s licencí na Kypru

Německo: akvizice fintechu se snahou proniknout k retail klientům

Marketing: spolupráce s influencery, eventy, „bezpečná alternativa k Binance“

Výsledek? Tisíce Evropanů si myslely, že jejich peníze jsou pod dohledem EU. Nebyla to pravda.

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💣 Co se opravdu stalo

Uvnitř impéria fungovalo účetnictví jako šachová partie:

klientské vklady přesouvané do fondu Alameda Research

půjčky bez zajištění

umělé zvyšování hodnoty tokenu FTT

zakrývání ztrát interními přesuny

Když unikly informace o díře v rozvaze, spustila se panika. Výběry, zmrazení účtů a krach během hodin.

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🇪🇺 Dopad na Evropu

zmrazené účty tisícům klientů z Německa, Francie, Česka, Polska a dalších zemí

FTX EU v insolvenci – zákazníci řeší návrat peněz v právním vakuu

bankovní domino efekt – opatrnost evropských bank krypto sektoru

regulační zrychlení – tlak na EU urychlil zavedení tvrdších pravidel

Evropa nebyla pozorovatel. Byla obětí.

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⚖️ Co následovalo

Sam Bankman-Fried byl zatčen, souzen a odsouzen.
Věřitelé se dodnes soudí o miliardy dolarů.

Ale důvěra? Tu EPA (a retail investoři) ztratili okamžitě.

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> Když padne burza, padne celý ekosystém.

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🎬 Závěr

FTX zabila mýtus, že:

> „Velká burza = bezpečná burza“

A Evropu naučila, že:

> „Licence ≠ ochrana.“

#FTX #cryptocrash #CryptoScandal #CryptoCollapse #DeFi