Do Kwon Requests Five-Year Sentence as He Faces 40 Years in South Korea

Do Kwon, co-founder of Terraform Labs, has asked a judge in the U.S. to limit his prison sentence to five years after the collapse of the Terra ecosystem, which caused a loss of approximately $40 billion from the cryptocurrency markets in 2022. Following his guilty plea for wire fraud and conspiracy in August, Kwon faces an additional 40 years in prison in South Korea.

Key Takeaways

Do Kwon is requesting a maximum of five years for his U.S. prison sentence.
He pleaded guilty to wire fraud and conspiracy charges.
Kwon faces a potential 40-year prison term in South Korea.
He has already agreed to forfeit over $19 million as part of his plea deal.
The U.S. sentencing date is set for December 11.

Do Kwon

Do Kwon Asks for a Reduced Sentence

Do Kwon has appealed to a U.S. judge to limit his prison time to five years due to his involvement in the dramatic collapse of the Terra ecosystem, which wiped out around $40 billion from the cryptocurrency market in 2022. In a court filing on Wednesday, Kwon contended that a longer sentence would be disproportionate considering the punishment he has already faced and the penalties he consented to, as reported by Bloomberg.

In August, Kwon pleaded guilty to two charges: wire fraud and conspiracy to defraud, after being extradited from Montenegro, where he had been detained. His attorneys noted that Kwon had spent nearly three years in custody, more than half of that time under harsh conditions in Montenegro, and he has already experienced significant personal and financial repercussions.

According to the plea agreement, U.S. prosecutors have committed not to seek a sentence exceeding 12 years. Nevertheless, Kwon's defense team maintains that a sentence longer than five years would be “far greater than necessary” to administer justice. As part of the agreement, Kwon has also consented to forfeit over $19 million along with several properties.

Kwon's Upcoming Challenges in South Korea

Even after his sentencing in the U.S., Kwon's legal issues will continue. South Korean prosecutors are actively pursuing a separate case related to the same incident, aiming to impose a prison sentence of up to 40 years.

Kwon’s formal sentencing in the U.S. is set for December 11, presided over by District Judge Paul Engelmayer in Manhattan. Prosecutors are expected to file their recommendations shortly.

Following the collapse of Terra in 2022, Kwon remained largely untraceable until he was arrested by Montenegrin authorities for using counterfeit travel documents. He spent four months in detention before both U.S. and South Korean officials requested his extradition—a process complicated by legal challenges in Montenegro’s lower courts.

Similar Cases: SBF Appeals His Conviction

Kwon is not the only figure in the cryptocurrency field facing significant legal issues. In 2024, a federal judge sentenced Sam Bankman-Fried, the former CEO of FTX, to 25 years in prison. Recently, Bankman-Fried returned to court, appealing his conviction and sentence in a U.S. appeals court. His lawyers argued that he was denied a fair trial, stating that the jury was not allowed to hear evidence demonstrating that FTX was still solvent. They claimed that the early narrative regarding the alleged theft of customer funds skewed the case against Bankman-Fried before he had an opportunity to properly defend himself.

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