Do Kwon says his US sentence should not exceed 5 years tied to the Terra crypto crash

Terraform Labs co founder Do Kwon maintains that any prison term above 5 years would be unjust for his involvement in the USD 40 billion TerraUSD collapse, a position he set out ahead of his upcoming sentencing, according to a Bloomberg report.

Kwon admitted to conspiracy and wire fraud in August after being extradited from Montenegro and resolved the case without a trial. His lawyers say the 12 year ceiling outlined in the plea agreement is harsher than necessary and does not reflect what he has already endured.

They point to almost 3 years of detention, including extended confinement under difficult conditions in Montenegro. Kwon has also agreed to forfeit more than USD 19 million along with several properties as part of the deal with US prosecutors.

The defense notes that Kwon still faces prosecution in South Korea for the same conduct and that authorities there are seeking a 40 year prison term. Kwon is scheduled to appear before Judge Paul Engelmayer on December 11 as the government prepares its sentencing recommendation.