After more than two years of global pursuit, a prison stint in Montenegro, and a guilty plea in the United States, Do Kwon is now making his final case before sentencing — and he’s asking for no more than five years behind bars.
Key Takeaways:
Kwon wants a maximum five-year U.S. sentence, arguing he has already served enough time.
South Korea still plans to prosecute him after the U.S. case.
The Terra collapse continues to drive legal pressure on major crypto figures.
The Terraform Labs co-founder formally requested leniency through a court filing this week, arguing that the punishment he’s already endured has been severe enough. His attorneys highlighted the physical and psychological toll of his imprisonment overseas and emphasized that he has accepted responsibility for his role in the Terra collapse, one of the most catastrophic events in crypto market history.
Terra’s crash still hangs over the case
The implosion of Terra and its algorithmic stablecoin system in 2022 erased roughly $40 billion from the digital asset market and triggered widespread contagion across lending platforms, hedge funds and exchanges. Kwon initially avoided authorities after the collapse, but his arrest in Montenegro on falsified travel documents eventually led to extradition to the United States.
Once in U.S. custody, he pleaded guilty to wire-fraud-related charges and agreed to surrender millions in personal assets — including property — as part of the plea deal. Prosecutors previously signaled they would not push for a sentence longer than 12 years, but Kwon’s team is now trying to bring that number dramatically lower.
U.S. prison time won’t end the legal battle
Even if the judge grants a lighter sentence, the matter will not end in Manhattan. South Korean prosecutors want Kwon transferred to Seoul once the American process concludes, and they are seeking a far harsher penalty — potentially up to 40 years in prison.
The timeline for when (or whether) he will be transferred remains unclear, though South Korea has repeatedly reiterated its request to take custody once the U.S. case wraps. Kwon’s sentencing hearing is scheduled for December 11, and prosecutors will make their own recommendation before the hearing.
Crypto executives under pressure globally
Kwon is the highest-profile defendant in the Terra fallout, but he is not alone in facing major penalties during the latest wave of regulatory crackdowns. Former FTX CEO Sam Bankman-Fried received a 25-year sentence in March and has since launched an appeal, arguing his trial was unfair.
The two cases represent a significant shift in how authorities treat crypto misconduct — no longer as market failure, but as criminal responsibility.
