Do Kwon, the co-founder of Terraform Labs, has asked a US court to limit his prison term to five years.
The request relates to his involvement in the 2022 collapse of the Terra blockchain network, which caused losses of about $40 billion across cryptocurrency markets.
According to a November 26 filing reported by Bloomberg, Kwon’s legal team argued that any sentence longer than five years would be unreasonable.
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They pointed out that he has already spent nearly three years in custody, much of it under harsh conditions in Montenegro, before being extradited to the United States.
Kwon’s sentencing in the US is scheduled for December 11 before Judge Paul Engelmayer in Manhattan. The prosecution is expected to submit its sentencing recommendation soon.
Kwon pleaded guilty in August to two charges, wire fraud and conspiracy to defraud, after his return from Montenegro, where he had been detained for using false travel documents.
Under his plea deal, prosecutors in the US agreed not to request a sentence longer than 12 years. Kwon also agreed to give up over $19 million in assets and several properties.
His legal troubles are not limited to the United States. Prosecutors in South Korea are pursuing their own case connected to the same events and are seeking a prison term of up to 40 years.
On November 19, a federal judge in New York sentenced William Lonergan Hill, co-founder and chief technology officer of Samourai Wallet, to four years in prison. How did the case unfold? Read the full story.
