Key Notes
- Terraform founder Do Kwon has requested that a US judge limit his prison term to five years.Kwon’s legal team mentioned that he has already spent about 3 years behind bars.Do Kwon pleaded guilty to the charges against him in August.
Do Kwon, the Terraform founder who was implicated by the implosion of the Terra
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blockchain, is asking for only five years in a United States prison.
He already pleaded guilty to the charges of conspiracy and wire fraud levied against him. As part of his petition, Kwon says that he has a separate case in South Korea.
Do Kwon Agrees to Penalties in a Deal with US Prosecutors
On November 26, Terraform founder Do Kwon asked a United States judge to limit his prison sentence to only five years. This is for the role he played in the $40 billion crash of TerraUSD stablecoin in 2022 that negatively impacted the broader crypto market.
According to a Bloomberg report, the young founder says a longer term would be too much, given that he has served other punishments. Kwon also mentioned that he has accepted the penalties meted to him.
This includes forfeiting more than $19 million along with several properties. That’s why he says a reduction in his jail term should be considered.
His legal team mentioned that he has already spent about 3 years behind bars, “with more than half that time in brutal conditions in Montenegro.”
As it stands, prosecutors in South Korea are pursuing a separate case linked to the same events. In this case, Do Kwon could serve up to 40 years in prison. Fortunately, US prosecutors will not be seeking a sentence longer than 12 years, as agreed.
At the same time, the defense has called anything beyond five years “far greater than necessary” to achieve justice.
Do Kwon Pleads Guilty to Fraud Charges
In December 2024, Montenegro’s Justice Minister, Bojan Božović, approved the extradition of Do Kwon to the United States.
This singular act marked a significant step in holding him accountable for his crimes. The decision was based on several factors, including the severity of charges, the sequence of extradition requests, and broader legal considerations.
A few weeks later, he was tried and pleaded not guilty to the multimillion-dollar fraud charges against him. By August, he finally admitted guilt on fraud and conspiracy charges related to the 2022 TerraUSD collapse.
His acceptance was a function of a deal that he agreed to with the court, including waiving his right to trial on both counts.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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Source: https://www.coinspeaker.com/terraform-founder-pleads-for-5-year-jail-term/
