Do Kwon, co-founder of Terraform Labs, is set to be sentenced in the United States on Thursday after pleading guilty to two serious charges. A federal court in the Southern District of New York is also reviewing information regarding his affairs in South Korea and Montenegro, where separate allegations have been made against him. Judge Paul Engelmayer questioned Kwon’s legal team and U.S. prosecutors about the potential penalties he could face in South Korea. In August, Kwon admitted guilt to wire fraud and conspiracy charges and is expected to be extradited to South Korea after serving his U.S. sentence. The court also raised questions about whether the four-month sentence he served in Montenegro could be credited towards his U.S. sentence. Kwon resisted extradition to the U.S. for over a year, and the court expressed concerns that if transferred to South Korea, he might complete his sentence in a shorter time.
Kwon gained significant prominence in the cryptocurrency world before the collapse of the Terra ecosystem in 2022, which severely impacted the market and caused substantial losses for investors. His defense has requested a maximum sentence of five years, while prosecutors seek at least twelve years. The U.S. government has described the damage caused by his actions as greater than that of other major crypto cases. Kwon’s legal team warns that despite a possible prison sentence in the U.S., he could face much harsher penalties—up to 40 years—if tried in South Korea. Thursday’s hearing may mark the conclusion of the chapter involving Kwon’s role in the 2022 Terra crisis. He remained at large until his arrest in Montenegro, where he awaited extradition to the U.S. South Korea issued an arrest warrant for Kwon in 2022 but has yet to apprehend him. Both governments are working with Montenegro on extradition efforts, and legal proceedings continue against other individuals connected to Terra.
Source: binance
