Terraform Labs co-founder Do Kwon is appealing to a US court to limit his prison sentence to five years while he is simultaneously facing charges in South Korea that could result in an additional 40 years in prison.
Kwon has argued in recent court filings that his previous incarceration and the agreements he has already accepted should limit any further sentencing in the US. Notably, he is seeking to limit his punishment for his involvement in the collapse of the Terra ecosystem, which led to a staggering $40 billion loss in cryptocurrencies back in 2022.
According to Bloomberg, Kwon claimed that a longer sentence would be disproportionate to the time he has already spent incarcerated.
Kwon previously pleaded guilty to charges of wire fraud and conspiracy earlier this year after being extradited from Montenegro. He has reportedly spent nearly three years in jail, much of it under difficult conditions.
As part of his plea deal, prosecutors in the US have agreed not to impose a sentence longer than 12 years, but Kwon’s legal team is recommending a maximum of five years as a fair sentence. Besides his prison sentence, Kwon has also consented to forfeiting over $19 million and several properties.
Kwon’s Upcoming Challenges in South Korea
Once his US sentencing concludes, Kwon’s legal troubles are far from over. South Korean prosecutors are pursuing their case based on the same events but are looking to impose a maximum of 40 years in prison. Kwon is scheduled to be sentenced by Judge Paul Engelmayer in New York on December 11.
Following the dramatic events surrounding the 2022 Luna crash, Kwon was arrested in Montenegro under claims of using forged travel documents. He spent four months in detention before his extradition processes began.
Other Crypto Figures Facing Legal Issues
Kwon is not alone in facing significant legal repercussions within the crypto industry. Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison, and he is currently appealing his conviction, arguing that he was not afforded a fair trial.
For more information and updates about Kwon and other high-profile figures in the crypto world, keep following the news.
