Do Kwon’s legal team is asking a U.S. federal judge to impose a maximum prison term of five years, marking the latest development in the long-running fallout from the $40 billion collapse of the Terra ecosystem. Kwon, who pleaded guilty in August 2025 to conspiracy and wire fraud, is scheduled to receive his final sentence on December 11, 2025, a date that will conclude one of the most high-profile crypto cases in history.
Defense Cites Harsh Detention and Personal Losses
In their filing, Kwon’s attorneys argue that five years represents a fair and appropriate punishment. They point to the nearly three years he has already spent in detention, including extended periods under what they describe as “brutal conditions” in Montenegro prior to his extradition. The defense also stresses that Kwon has endured severe personal and financial consequences since the collapse of the Terra ecosystem.
Plea Deal Sets Sentence Range but Leaves Final Decision to Judge
Under Kwon’s plea agreement with U.S. prosecutors, he consented to forfeit more than $19 million along with multiple properties linked to the case. In return, the U.S. government agreed not to pursue a sentence exceeding 12 years, though the court has full discretion to decide the final term. Judge Paul Engelmayer, who is overseeing the case, will weigh the defense’s request alongside federal sentencing guidelines and the terms of the plea deal.
Additional Legal Exposure in South Korea
Even after the U.S. case concludes, Kwon faces significant legal jeopardy in South Korea. Prosecutors there are seeking a potential sentence of up to 40 years for the same conduct, making it likely that Kwon’s legal battles will continue well beyond his December hearing.
For now, the court has received the defense’s formal request, setting the stage for the sentencing decision next month.