U.S. prosecutors have formally requested a New York federal judge to sentence Terraform Labs co-founder Do Kwon to 12 years in prison. This recommendation follows a jury finding him and his company liable for civil fraud charges earlier this year regarding the collapse of the Terra ecosystem. The government characterized the fraud as "colossal," citing it as a catalyst for the 2022 market contagion. The sentencing request is linked to the $40 billion collapse of the TerraUSD stablecoin and LUNA token. [Update 1] Defense's Rebuttal: In response to the prosecutors' recommendation, Do Kwon's legal team is advocating for a significantly lighter sentence, arguing that any prison term should be capped at five years. The defense emphasizes that this duration would be more appropriate given the circumstances, contrasting sharply with the 12-year term sought by the government.