Do Kwon is asking a Manhattan judge to reduce his prison sentence to five years. TerraUSD collapse.

His lawyers argue that due to the harsh conditions he endured during his detention in Montenegro, and also his agreement to surrender $19 million, he is taking responsibility.

Do Kwon, the co-founder of Terraform Labs, is urging a Manhattan federal judge to give him a prison term of not more than five years due to his involvement in the collapse of TerraUSD, an event that caused the loss of about $40 billion. His new request comes even though the prosecutors had previously recommended a sentence of up to 12 years under the plea deal.

DO Kwon Lawyers Present New Arguments for a Reduced Term

The report was covered by Bloomberg, and according to it, Kwon’s legal team submitted a new filing on Wednesday and argued that anything longer than five years would be “far greater than necessary.” According to them, the time Do Kwon has spent in detention, especially during the period when he was held in Montenegro, should make the court reduce any other Punishment.

His lawyers describe his time in the Balkan country as harsh, also noting that he endured extremely difficult conditions while he was awaiting his sentence. This is not the first time Do Kwon and his legal team have entered a plea in the U.S. case. Back in January, TronWeekly reported that the 33-year-old developer pleaded not guilty to all the fraud charges brought against him by the U.S. fraud authorities.

Also Read: Terra’s Do Kwon Pleads Not Guilty in Major $40B Fraud Case

Also, in August, Kwon went on to plead guilty to charges of conspiracy and wire fraud after being sent to the United States. According to the recent plea, there’s an agreement that requires him to surrender over $19 million and several other properties, which, according to his defense team, shows his willingness to take responsibility for his actions.

His sentencing is set for December 11 before U.S. District Judge Paul Engelmayer. Although the maximum sentence under federal law could reach 25 years, the final decision on what would go on completely rests on the shoulders of the judge, who is not obligated to follow either the defense request or whatever the prosecutors recommend.

In all, the U.S. government is expected to file its own final sentencing recommendation soon, but prosecutors have already promised not to argue for more than 12 years as part of the plea arrangement

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Filed under: Bitcoin - @ November 28, 2025 3:00 am