Breaking development in the Terra saga: federal prosecutors just dropped their sentencing recommendation for Do Kwon, and they're pushing for 12 years behind bars.

The founder behind one of crypto's most spectacular implosions now faces over a decade in prison if the court sides with prosecutors. This marks a significant escalation in the legal fallout from the Terra-Luna collapse that wiped out billions in investor funds back in 2022.

The 12-year demand signals authorities aren't taking this lightly. Given the scale of losses ordinary investors faced when UST lost its peg and LUNA spiraled to near-zero, prosecutors seem determined to send a message about accountability in the crypto space.

Still waiting on the judge's final call, but this sentencing recommendation gives us a clearer picture of what consequences might look like for one of the industry's biggest debacles.