Do Kwon Considers Five-Year US Prison Sentence a Fair Punishment

Do Kwon suggests a five-year US prison term is fair.

Do Kwon, co-founder of Terraform Labs, has stated that a US court should impose a prison sentence of no more than five years. This is according to court documents reviewed by Bloomberg.

According to sentencing recommendations from the defense, the prosecution has agreed not to seek more than 12 years of imprisonment. However, the lawyers deemed this decision “far harsher than necessary” to achieve justice.

The attorneys noted that Kwon has already spent nearly three years in detention, “more than half of which was in harsh conditions in Montenegro,” and has paid a significant price for his crimes. The Terraform Labs co-founder also agreed to forfeit over $19 million and part of his personal assets as part of a plea deal.

According to the lawyers, Kwon still faces trial in South Korea, where local prosecutors are demanding a 40-year prison sentence.

Sentencing in the US is scheduled for December 11. Authorities have promised to provide their own recommendations to the court soon.

In August, Kwon pleaded guilty to criminal charges of fraud and conspiracy. He waived his right to a jury trial.

The charges against the Terraform Labs co-founder are related to the collapse of the algorithmic stablecoin TerraUSD (UST) and the native token LUNA in 2022. The ecosystem’s collapse led to investor losses amounting to tens of billions of dollars and triggered a crisis in the crypto market.

In March 2023, Kwon was detained in Montenegro while attempting to leave the country with forged documents. After lengthy procedures, the entrepreneur was extradited to the US, where charges were brought against him.

Back in 2022, a court in Seoul issued an arrest warrant for Kwon and five others on charges including violations of South Korea’s capital markets law.