U.S. prosecutors are seeking a 12-year prison sentence for Terraform Labs founder Do Kwon, arguing that the collapse of Terra and Luna amounted to one of the largest frauds in crypto history. The request, filed in the Southern District of New York, highlights the scale of losses tied to TerraUSD (UST) and Luna’s algorithmic failure—an implosion that erased more than $40 billion and triggered widespread contagion across the digital asset sector.

In their filing, prosecutors said Kwon spent years misleading investors about TerraUSD’s stability, artificially inflating its perceived safety and contributing to the system’s eventual collapse. They argued that the fallout extended far beyond market volatility, calling Terra’s unraveling “a defining moment” that reshaped global regulatory scrutiny of crypto markets.

Kwon’s defense team has pushed for a significantly lighter sentence—up to five years—claiming that coordinated trading activity from third parties and broader market stress helped accelerate TerraUSD’s depeg. They cited research, including Chainalysis data, suggesting that external actors exploited structural weaknesses rather than Kwon deliberately engineering the collapse.

Kwon pleaded guilty in August to wire fraud and conspiracy charges. His criminal case stems from a March 2023 indictment that included commodities fraud, securities fraud, wire fraud and market manipulation allegations. The core of the case centers on TerraUSD, the algorithmic stablecoin designed to maintain a $1 peg through a balancing mechanism with its sister token, Luna. When that mechanism failed in May 2022, both assets collapsed rapidly, wiping out tens of billions in value and triggering insolvencies across multiple crypto firms.

Prosecutors are not seeking restitution, citing the complexity of calculating losses across global bankruptcy cases already underway. Instead, they requested forfeiture of roughly $19 million, noting that compensation efforts for victims will primarily be handled through restructuring processes tied to firms affected by Terra’s collapse.

Kwon’s legal challenges span multiple countries. After being arrested in Montenegro in March 2023 for attempting to travel on forged documents, he was extradited to the United States in December 2024 following competing requests by both the U.S. and South Korea. He also previously lost a civil case brought by the U.S. Securities and Exchange Commission, where a jury found that Terraform Labs and Kwon misled investors about TerraUSD’s mechanics and backing.

Sentencing is scheduled for December 11, marking a key moment in one of crypto’s most consequential legal sagas. While the ruling will conclude Kwon’s federal criminal case, numerous bankruptcy, civil and creditor proceedings tied to Terra’s collapse remain ongoing.

Binance has introduced Binance Junior, a new platform designed to help children learn about cryptocurrency in a safe and supervised environment. The initiative places a strong focus on kids crypto education, offering parents full oversight of their child’s digital finance activities.

The platform allows parents to manage and monitor every step of their child’s crypto experience. Young users can explore the basics of blockchain, digital wallets, and tokens while parents approve transactions, set limits, and control account settings. This marks a significant shift in the crypto industry toward family-oriented financial literacy tools.

Binance Junior functions as a sub-account under a parent’s main Binance account, enabling secure access while preventing unsupervised interactions. Through hands-on, guided learning, kids can gain early exposure to financial concepts that are becoming increasingly important in the digital age.

Across Europe, interest in youth-focused digital finance education has grown quickly. A 2025 European Banking Authority survey revealed that over 60% of teens expressed interest in learning more about digital finance, including crypto. Binance Junior meets this demand by providing a structured environment that combines learning with real, parent-approved participation.

Another feature of the Binance Junior platform is its emphasis on long-term saving habits. Parents can set up recurring contributions to low-risk digital assets, teaching principles such as diversification, patience, and risk management. This aligns with broader trends in the crypto industry, where educational and savings-focused products are gaining momentum.

In related news, Binance Wallet has activated the second wave of Humanity Protocol (H) airdrop rewards on Binance Alpha. Users with at least 242 Binance Alpha Points can claim 295 H tokens on a first-come, first-served basis. If unclaimed, the threshold will decrease by 5 points every five minutes. Claiming requires 15 Alpha Points, and users must confirm within 24 hours or the claim is forfeited.

Binance’s push into youth financial literacy underscores how digital assets are evolving from niche investments into standard components of modern economic education.

SEI has officially integrated native USDC through Circle, unlocking faster, cheaper, and more reliable stablecoin transfers across its blockchain ecosystem. This upgrade significantly enhances the network’s efficiency, marking a major milestone for SEI’s push into high-performance DeFi and payments.

With native USDC now supported, users avoid the costly and time-consuming process of bridging stablecoins from other chains. The result is instant settlement, reduced fees, and improved accessibility for anyone using USDC on SEI.

Why Native USDC Matters for SEI’s Growth

Integrating USDC directly into the SEI blockchain boosts both liquidity and utility. As one of the most trusted stablecoins in the world, USDC brings credibility and seamless usability to the network, enabling:

• Faster and cheaper transactions
• Smooth onboarding for users already familiar with USDC
• More reliable infrastructure for DeFi protocols and payment systems
• Greater liquidity for DEXs and on-chain applications

Because USDC is fully backed by dollar reserves, developers can build financial applications that offer stability, precise pricing, and dependable settlement—key components of any serious DeFi ecosystem.

Impact on Users and Developers

For everyday users, native USDC means instant, bridge-free transfers across the SEI network. Payments, trading, and NFT purchases can all be executed with minimal friction.

Developers benefit even more. With stablecoin support now part of the network’s core design, teams can create advanced financial tools—like lending markets, yield applications, and automated trading systems—without relying on external conversion services.

This integration also signals SEI’s ambition to compete more aggressively among Layer 1 blockchains. By prioritizing scalable infrastructure and stablecoin utility, SEI positions itself as a strong option for both retail users and institutional partners seeking high-speed Web3 functionality.