Do Kwon Says 5-Year US Sentence Is Enough as South Korea Seeks 40 Years

Terraform Labs founder Do Kwon is asking a U.S. judge to limit his prison sentence to five years. 

Meanwhile, in South Korea, prosecutors are seeking up to 40 years in prison for him over the 2022 collapse of the Terra ecosystem.

Kwon Argues a Longer U.S. Sentence Would Be Excessive

In a Wednesday court filing, Kwon’s legal team said a sentence beyond five years would be “far greater than necessary,” pointing to the punishment he has already endured and the penalties he has agreed to accept. 

In August, Kwon pleaded guilty to two counts, including conspiracy to defraud, after his extradition from Montenegro. His lawyers emphasized that he has spent nearly three years behind bars, including prolonged periods in what they described as harsh Montenegrin prison conditions. 

They also noted he has paid a substantial personal and financial price, including the forfeiture of over $19 million and multiple properties.

Under his plea deal, U.S. prosecutors agreed not to seek more than 12 years, but the defense insists five years is sufficient.

South Korea Prepares Its Own Case

Regardless of what happens in the U.S., Kwon will still face legal consequences at home. South Korean prosecutors are pursuing a separate suit related to the same events and are aiming for a sentence of up to 40 years. 

Authorities there have long accused Kwon of playing a central role in the collapse of TerraUSD and LUNA, which erased an estimated $40 billion from the crypto market in 2022.

Kwon is set for sentencing in the U.S. on December 11 by Judge Paul Engelmayer. In parallel, prosecutors will submit their sentencing recommendation soon.

Trail of Legal Battles

Kwon’s downfall began after Terra’s collapse, followed by months during which his whereabouts were unknown. He was eventually arrested in Montenegro for trying to travel using falsified documents, sparking a tug-of-war between U.S. and South Korean authorities for extradition.

He stayed four months in a Montenegrin prison before the courts approved extradition to the U.S.

SBF Appeals His 25-Year Sentence

Kwon’s case echoes other high-profile crypto legal battles. FTX founder Sam Bankman-Fried was sentenced to 25 years in 2024. However, earlier this month, his case returned to court as he challenged both his conviction and sentence. 

His attorneys argue he was denied a fair trial, claiming the jury never heard evidence that FTX might have been solvent and that early narratives shaped the case before the defense could fully respond.