In a sentencing recommendation filed Wednesday, November 26, Kwon’s lawyers argued that while prosecutors agreed not to seek more than 12 years under his plea deal, even that term exceeds what is necessary for justice.
Terraform Labs co-founder Do Kwon requests five-year prison sentence in US trial
Source Cryptopolitan
The co-founder of Terraform Labs, Do Kwon, has formally requested a US judge to limit his prison sentence to five years, arguing that this would be “more than sufficient” punishment in a fraud case tied to the collapse of the Terra ecosystem, which erased nearly $40 billion in investor value.
He made this request after pleading guilty to conspiracy and wire fraud in August, thereby avoiding a trial following his extradition from Montenegro. Notably, Montenegro is where authorities had arrested and convicted Kwon for using a fake passport while fleeing charges in South Korea.
Kwon’s defense team urges court to consider reducing his prison sentence
His defense team argued that Kwon had already served almost three years in jail, with more than half of this time spent under severe conditions in Montenegro.
They also noted that Terraform’s co-founder already suffered repercussions for his actions. Meanwhile, it is worth noting that Kwon had also agreed to relinquish over $19 million and certain properties as part of the plea agreement.
As they await the judge’s consideration of their argument, the lawyers reminded the court that their client is still on trial in South Korea on similar charges, where prosecutors are seeking a 40-year prison sentence.
Reports indicated that Kwon’s sentencing is scheduled for December 11 and will be conducted by Paul Adam Engelmayer, an American lawyer and jurist serving as a United States District Judge of the US District Court for the Southern District of New York. Before then, the government is required to present its own sentencing recommendation soon.
Following his decision to confess to his guilt, Kwon read from a prepared statement acknowledging that he had willingly collaborated with others to deceive Terraform Labs’s cryptocurrency buyers and had ultimately defrauded them. “What I did was wrong, and I want to apologize for my actions. I accept full responsibility,” he added.
Terraform’s TerraUSD collapses due to a fraud incident
Regarding the collapse of Terraform’s TerraUSD, reports noted that this collapse was significant, leading to major disruptions in the crypto market in spring 2022. It also resulted in the downfall of the FTX cryptocurrency exchange.
Kwon’s guilty plea halted a trial scheduled for next year before US District Judge Engelmayer. The court decided to charge him in 2023 and sent him to the US in January.
To serve as a warning to any individual with such a motive, US prosecutors implied that they would aim for a maximum sentence of 12 years in this plea deal. Under US law, the highest penalties for conspiracy are five years, and for wire fraud are twenty years.
Initially, the 33-year-old encountered a total of nine charges. The US court ruled that once he completed half of his sentence, he would be allowed to finish the remaining agreed-upon time in prison in South Korea. However, this only applied as long as he strictly adhered to the rules of his plea agreement and met the requirements for a transfer program.
Meanwhile, the US Securities and Exchange Commission filed a lawsuit in 2024 alleging that Terraform and Kwon, who owned 92% of the company, committed civil fraud. This led to a two-week trial in New York, during which a jury concluded that Kwon and Terraform had deceived investors.
Following this information, analysts noted that this outcome is a bad sign for Kwon’s chance of winning against criminal charges.
Get $50 free to trade crypto when you sign up to Bybit now
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
2025 Black Friday is coming! Which stocks may see volatility?Coming on the day right after Thanksgiving in the United States, Back Friday marks the start of the holiday shopping season. Sales data from this shopping frenzy day reflects investor confidence and consumer trends.
The National Retail Federation (NRF) predicts that holiday season (Nov and Dec) retail sales in 2025 will likely exceed $1 trillion for the very first time, which represents a year-over-year increase of 3.7 to 4.2 percent.
Historic data from the past decade show that the retail sector has generally outperformed the S&P 500 during the weeks before and after Black Friday.
The following retailing companies are expected to be big winners:
Coming on the day right after Thanksgiving in the United States, Back Friday marks the start of the holiday shopping season. Sales data from this shopping frenzy day reflects investor confidence and consumer trends.
The National Retail Federation (NRF) predicts that holiday season (Nov and Dec) retail sales in 2025 will likely exceed $1 trillion for the very first time, which represents a year-over-year increase of 3.7 to 4.2 percent.
Historic data from the past decade show that the retail sector has generally outperformed the S&P 500 during the weeks before and after Black Friday.
The following retailing companies are expected to be big winners:
Bitcoin Bleeds to $86K, But This Key Indicator Screams "The Top Isn't In"Bitcoin’s adjusted Spent Output Profit Ratio (aSOPR) has spent nearly two years coiling below the extremes seen at past bull-market peaks, even as BTC trades around $86,300 and down 9% on the week — a setup that leaves open the possibility that this cycle’s true top may still lie ahead.
Bitcoin’s adjusted Spent Output Profit Ratio (aSOPR) has spent nearly two years coiling below the extremes seen at past bull-market peaks, even as BTC trades around $86,300 and down 9% on the week — a setup that leaves open the possibility that this cycle’s true top may still lie ahead.
Bitcoin Price Rebound Gains Traction with $90K Break in SightBitcoin is trading above $87,000 and its 100-hour SMA after rebounding from $83,500, with a bearish trend line at $88,200 and resistance at $89,000–$90,000 now in focus as BTC either breaks higher toward $91,750–$94,000 or slips back toward $86,700, $85,000 and lower supports.
Bitcoin is trading above $87,000 and its 100-hour SMA after rebounding from $83,500, with a bearish trend line at $88,200 and resistance at $89,000–$90,000 now in focus as BTC either breaks higher toward $91,750–$94,000 or slips back toward $86,700, $85,000 and lower supports.
Bitcoin price action shows signs of a potential short squeeze as it hovers near $88,000, with analysts watching liquidity dynamics that could push it toward $89,000 or retrace to $85,000.
Ethereum Reclaims $3K Handle—Is a Breakout Imminent?Ethereum has jumped back above $3,000 and reclaimed key Fib levels, with a bullish trend line at $2,880 and strong MACD/RSI readings putting a breakout above $3,120–$3,165 — and a possible run toward $3,320–$3,350 — on the table, as long as support around $2,980–$2,920 holds.
Ethereum has jumped back above $3,000 and reclaimed key Fib levels, with a bullish trend line at $2,880 and strong MACD/RSI readings putting a breakout above $3,120–$3,165 — and a possible run toward $3,320–$3,350 — on the table, as long as support around $2,980–$2,920 holds.
