Do Kwon is ready for sentencing on December 11, 2025, in Manhattan federal court docket. Decide Paul Engelmayer will determine his jail time period. U.S. prosecutors are searching for the hardest sentence allowed underneath his plea deal. They argue Do Kwon’s fraud was giant sufficient to shake components of the crypto market after the Terra collapse.
Do Kwon Prosecutors Search 12 Years Time period
In response to Bloomberg report, federal prosecutors mentioned the size of the crime was excessive. They informed Decide Engelmayer it reached far past one venture’s failure. The federal government mentioned the shock broken retail holders and despatched stress via crypto buying and selling and lending venues.
Do Kwon pleaded responsible in August 2025 to at least one rely of conspiracy to commit commodities fraud, securities fraud, and wire fraud, plus one rely of wire fraud. The Justice Division mentioned the 2 counts carry a mixed most of 25 years. Beneath the plea association, prosecutors can search as much as 12 years.
Prosecutors are asking for that 12-year time period. They mentioned Do Kwon lied to customers and buyers about key claims tied to the Terra ecosystem. They informed the court docket the deception helped set off the 2022 crash of TerraUSD and Luna, which was broadly described as a roughly $40 billion collapse.
Kwon is pushing for much less time. In a separate submitting reported final week, he mentioned a five-year time period could be adequate. The request places Kwon and the federal government on reverse sides forward of the sentencing date.
Forfeiture, No Restitution, and the Extradition Path
The plea requires Do Kwon to forfeit greater than $19 million in proceeds, together with an curiosity tied to Terraform and its cryptocurrencies, in line with the Justice Division. Prosecutors have additionally mentioned they don’t seem to be pursuing restitution. They argued that losses could be laborious to calculate throughout a big and world group of victims.
The case got here to New York after a cross-border pursuit. Kwon was a arrested in March 2023 when he tried to journey to Dubai from Montenegro utilizing cast papers. U.S. and South Korean officers sought extradition in an prolonged court docket course of.
