Do Kwon Seeks Five-Year US Sentence Over TerraUSD Collapse

Terraform Labs co-founder Do Kwon requested a US choose to cap his jail time at 5 years for his position within the collapse of the Terra ecosystem, which erased about $40 billion from crypto markets in 2022.

In a courtroom submitting on Wednesday, Kwon argued {that a} long term could be extreme given the punishment he has already served and the penalties he has agreed to just accept, according to Bloomberg.

Kwon pleaded guilty in August to 2 counts of wire fraud and conspiracy to defraud after being extradited from Montenegro, the place he had been detained. His attorneys mentioned he had spent virtually three years behind bars, “with greater than half that point in brutal circumstances in Montenegro,” and that he had already paid a heavy private and monetary worth.

Below the plea settlement, US prosecutors agreed to not search a sentence longer than 12 years. Nevertheless, the protection referred to as something past 5 years “far higher than mandatory” to attain justice. Kwon additionally agreed to forfeit greater than $19 million together with a number of properties as a part of the deal.

Kwon to face jail time in South Korea

After the US sentencing, Kwon’s authorized troubles is not going to be over. Prosecutors in South Korea are pursuing a separate case tied to the identical occasions and are searching for as much as 40 years in jail.

Associated: From TerraUSD to YU: Why stablecoins fail to hold $1 and the risks investors can’t ignore

Kwon is scheduled to be sentenced by US District Decide Paul Engelmayer in Manhattan on Dec. 11. Prosecutors are anticipated to submit their very own suggestion within the coming days.

After the 2022 Terra crash, Kwon’s whereabouts had been largely unknown till Montenegrin authorities arrested him for using falsified journey paperwork. He served 4 months in jail there earlier than US and South Korean officers each petitioned Montenegro for extradition, which was complicated by challenges within the nation’s decrease courts.

Associated: Three years after FTX’s collapse, creditors wait as the industry rebuilds trust

SBF appeals conviction

Kwon isn’t the one crypto-related determine who has not gotten off. In 2024, a federal choose sentenced former FTX CEO Sam Bankman-Fried to 25 years in jail. Earlier this month, the case headed back to court as the previous CEO challenged his conviction and sentence in a US appeals courtroom, the place his attorneys argued that he was denied a good trial.