Terraform Labs co-founder Do Kwon has formally petitioned a United States federal court to impose a maximum five-year prison sentence in his ongoing criminal case. The request comes as the cryptocurrency entrepreneur faces substantially more severe charges in his native South Korea, where prosecutors are seeking a 40-year incarceration period.
Legal representatives for Kwon submitted comprehensive sentencing memoranda arguing that the proposed term would adequately address the gravity of the offenses while considering the defendant’s circumstances. The documents outline multiple factors the defense believes warrant judicial leniency, though specific details remain under court seal.
The dual sentencing scenarios highlight the complex international jurisdictional challenges emerging in high-profile cryptocurrency cases. Legal experts note the contrasting sentencing frameworks between U.S. and South Korean judicial systems, with Asian jurisdictions typically imposing stricter penalties for financial crimes.
Kwon remains in U.S. custody pending final sentencing determinations. The Terra ecosystem collapse in 2022 triggered approximately $40 billion in market value evaporation, creating ripple effects throughout the digital asset industry. Both American and South Korean authorities have pursued extensive investigations into the platform’s sudden failure.
The Manhattan federal court will consider the defense’s sentencing recommendation alongside prosecution arguments before delivering a final ruling. Meanwhile, extradition discussions between the two nations continue through diplomatic channels.
