Key Points
- •Do Kwon is requesting a maximum of five years in a U.S. prison, citing his extensive detention and harsh conditions.
- •He faces a separate prosecution in South Korea, where authorities are seeking up to 40 years.
- •Former FTX CEO Sam Bankman-Fried is appealing his 25-year sentence, claiming his original trial was unfair.
Do Kwon's Defence Arguments
Terraform Labs co-founder Do Kwon is asking a US federal judge to impose no more than a five-year prison sentence for his role in the 2022 collapse of the Terra ecosystem. This crash resulted in the loss of approximately $40 billion from cryptocurrency markets and prompted investigations in multiple countries.
According to a Wednesday filing, Kwon argued that any sentence exceeding five years would be disproportionate given the punishment he has already endured. His legal team stated he had spent nearly three years in detention, with more than half of that time under harsh and inhumane conditions in Montenegro. They also emphasized that he has already faced severe financial and personal consequences since Terra's implosion.
Under his plea deal, US prosecutors agreed not to pursue a sentence longer than 12 years. However, Kwon's legal team insisted that a sentence of more than five years would be excessive and beyond what is necessary for justice. As part of the agreement, he also consented to forfeit over $19 million and several properties.
South Korea's Separate Prosecution
Kwon's legal challenges extend beyond the United States. South Korean prosecutors are pursuing a separate case related to the Terra fallout and are reportedly seeking a prison sentence of up to 40 years.
He is scheduled to be sentenced on December 11 by US District Judge Paul Engelmayer in Manhattan. Prosecutors are expected to submit their sentencing recommendation soon.
Kwon had been out of public view for months following the Terra collapse until Montenegrin authorities apprehended him for possessing falsified travel documents. He served four months in prison in Montenegro before the United States and South Korea contested his extradition, a process that became complicated within Montenegro's judicial system.
Sam Bankman-Fried's Appeal
Kwon is not the only prominent figure in the industry facing significant legal repercussions. Former FTX CEO Sam Bankman-Fried, who received a 25-year sentence earlier this year, is now appealing his conviction. He contends that his original trial was unfair.