Do Kwon Seeks Reduced Five-Year Sentence Ahead of December Ruling

Do Kwon, the co-founder of Terraform Labs, has petitioned a US court to limit his prison term to five years for his involvement in the 2022 collapse of the TerraUSD stablecoin.

Kwon pleaded guilty to conspiracy and wire fraud in August following his extradition from Montenegro. His defense team argues that the maximum 12-year sentence permitted under his plea deal is "far greater than necessary," citing the "brutal conditions" of his previous detention in Montenegro and the time he has already served in custody.

"What I did was wrong," Kwon stated during his plea hearing, admitting to misleading investors regarding the stability mechanisms of TerraUSD.

The defense filing also noted that Kwon faces significant legal exposure in South Korea, where prosecutors are seeking a 40-year prison term for the same actions. As part of his US plea agreement, Kwon has already agreed to forfeit over $19 million. US District Judge Paul Engelmayer is scheduled to deliver the sentence on December 11.