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U.S. Prosecutors Urge 12-Year Sentence for Terra Founder Do Kwon

They argue the Terra crash caused tens of billions in losses, warranting parity with penalties in other major crypto fraud cases.

Overview

  • In a filing to the Southern District of New York, prosecutors asked for the full 12 years permitted under Kwon’s plea agreement.
  • Kwon previously pleaded guilty to conspiracy to defraud and wire fraud, with the DOJ agreeing to seek no more than 12 years despite a higher statutory maximum.
  • Defense attorneys requested a five-year term, citing nearly three years already spent in custody, forfeiture of more than $19 million and properties, and potential prosecution in South Korea.
  • Prosecutors framed the Terra collapse as wiping out over $40 billion and contributing to a broader crypto market downturn, urging a sentence consistent with cases like Sam Bankman-Fried’s and rejecting comparisons to Alex Mashinsky.
  • Sentencing is scheduled for December 11 in Manhattan before U.S. District Judge Paul Engelmayer.