Do Kwon Sentencing: Judge Seeks Clarification on Possible 40-Year Prison Sentence in South Korea

Summary:
US District Judge Paul Engelmayer is requesting detailed clarifications from both prosecutors and defense attorneys concerning several unresolved matters ahead of Do Kwon’s forthcoming sentencing. This includes the potential for Kwon to face an additional 40-year prison sentence in South Korea on top of any time served in the United States. The judge's inquiries come as the parties prepare for a hearing scheduled for December 11.

Key Takeaways

Judge Paul Engelmayer has requested thorough clarification on issues related to Do Kwon’s potential sentencing.
Kwon could face an additional 40-year prison sentence in South Korea after his time in the U.S.
The judge is exploring the implications of Kwon’s prior detention in Montenegro.
Kwon’s defense team argues for a lighter sentence citing harsh conditions during his detention.

Do Kwon Sentencing: Judge Demands Clarity on Looming 40-Year South Korea Prison Term

Court Seeks Clarity on Kwon’s Potential 40-Year Korean Prison Term

In his recent directives, Judge Engelmayer has posed several questions regarding the ongoing criminal proceedings against Do Kwon in South Korea. He is requesting information about the expected outcomes of Kwon's charges, any existing agreements with Korean authorities, and the possible sentencing ranges in case of a conviction.

South Korean prosecutors have indicated that they could seek up to 40 years in prison for Kwon, based on allegations that overlap with those in the U.S. case. Additionally, the judge is inquiring whether a potential Korean sentence could run concurrently with or consecutively to a U.S. sentence, as this could impact Kwon’s overall punishment.

The order also asks for clarification regarding the nearly two years Kwon spent in custody in Montenegro. Detained since March 2023 for using a false passport, the judge wants to understand if any of that time could be applied to his U.S. sentence and whether the suggested 12-year sentence assumes none of that time counts.

Defense Pushes Back as Prosecutors Label TerraUSD Collapse "Colossal"

Prosecutors have characterized the collapse of TerraUSD as significant, indicating its impact on the broader market and the downfall of various major firms, including FTX. Kwon admitted to conspiracy and wire fraud charges in August, acknowledging that he misled investors regarding TerraUSD's stability and concealed vital information during a 2021 depeg incident.

Kwon's defense team, however, has requested a five-year sentence instead, emphasizing the harsh conditions he faced while detained in Montenegro and raising concerns regarding a potential long prison term in South Korea after serving time in the U.S. They contend that a severe sentence in the U.S. would lead to an excessively long total imprisonment period for Kwon.

Judge Requests DOJ Clarification on Victim Compensation and Asset Forfeiture

The judge's request for clarity continues as he seeks answers regarding Kwon's potential supervised release if he is likely to be deported from the U.S. He also questioned what assurances exist that another country would enforce Kwon’s sentence following his transfer.

Prosecutors have expressed their intention to support requests for Kwon’s transfer to South Korea once he has served half of his U.S. sentence. However, the judge emphasized that such transfers necessitate thorough recommendations to the Bureau of Prisons.

Moreover, the court pointed to several administrative issues concerning the forfeiture of assets and victim compensation. The judge has tasked the Department of Justice with clarifying how it will determine which victims are eligible for compensation from seized assets, especially given the international scope of the losses and the absence of a restitution order in the case.