Terraform Labs co-founder Do Kwon's legal team has proposed a five-year prison sentence for his involvement in the 2022 TerraUSD stablecoin collapse. Kwon admitted to misleading investors about the stablecoin's mechanisms and has been in custody for nearly three years. Sentencing is scheduled for December 11, with prosecutors open to a maximum 12-year term under a plea agreement, though the final sentence remains undecided.