Terraform Labs co-founder Do Kwon requests five-year prison sentence in US trial
The post Terraform Labs co-founder Do Kwon requests five-year prison sentence in US trial appeared on BitcoinEthereumNews.com.
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 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. 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…
Filed under: News - @ November 27, 2025 1:25 pm