Terra Founder Do Kwon Requests Five-Year Prison Term Ahead Of December 11 Sentencing

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In a turn of events that will surely keep legal analysts and crypto enthusiasts on the edge of their seats, Do Kwon, the infamous co-founder of Terraform Labs, is apparently asking for a lighter sentence. His legal team, in a display of stunning logic, is suggesting that a five-year stint behind bars would be more than enough for his involvement in the massive $40 billion crash of TerraUSD (UST) in 2022. Well, isn’t that generous of him? 🙄

Terra’s Do Kwon Says Five Years In Prison Will Suffice

On Wednesday, Kwon’s lawyers came forward with the startling assertion that the former CEO deserves only a five-year sentence. Apparently, nearly three years in prison already (with half of that time in some pretty tough conditions in Montenegro) has been “substantial” enough. Because who wouldn’t consider prison in Montenegro “brutal,” right? 🌍

In a legal document that Bloomberg had the pleasure of reviewing, Kwon’s lawyers argued that the five-year sentence would more than make up for his “crimes” and that the prosecutor’s expected 12-year sentence was, well, a bit of an overkill. I mean, who needs justice when you’ve had a few rough nights in a foreign jail, right? 😏

Adding more intrigue to the whole affair, Kwon had previously agreed to forfeit over $19 million in assets as part of a plea deal earlier this year. This was after he had originally pleaded not guilty to a variety of charges, including securities fraud and conspiracy to commit money laundering. But hey, who can blame him for changing his plea? It’s all part of the game. 🎲

He did take the high road at one point, offering an apology to the court, admitting that he “made false and misleading statements” about how TerraUSD had managed to regain its peg in 2021. Apparently, he “failed to disclose” the role a trading firm played in the recovery. Classic Kwon! 🙄

The sentencing is expected to come soon, and prosecutors are under some agreement not to seek more than 12 years for the Terra mastermind. The final verdict will be delivered by US District Judge Paul Engelmayer on December 11, 2025, in the majestic land of Manhattan. Let’s all mark our calendars! 🗓️

South Korea’s Prosecution Pending

In an interesting twist, Kwon is still awaiting trial in his homeland, South Korea, where prosecutors are hoping to put him away for up to 40 years. Yes, you read that right-40 years. Seems like the good old home country has a bit of a bone to pick with him. 😅

After Terraform Labs collapsed, both US and South Korean authorities had their sights set on Kwon. He made his escape, though, evading capture while he fled from his home country and Singapore. Quite the international fugitive, wasn’t he? 🌍✈️

Eventually, Kwon was detained in Montenegro in March 2023, along with Han Chang-joon, Terraform Labs’ former finance officer, for trying to board a plane with fake documents. At least they had a little fun in Montenegro, with Kwon spending over a year and a half in custody, getting an extra two months courtesy of the US and South Korea. Talk about being in high demand! 🕵️‍♂️

The extradition battle between the two countries stretched on, but ultimately, Kwon was shipped off to the US on December 31, 2024. After all that drama, who knew that 2025 would still have more to come? 🤷‍♂️

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2025-11-28 11:19