US Prosecutors Seek 12-Year Sentence for Do Kwon Fraud

Clayton described the case as involving a “colossal” fraud with significant financial damage to investors. He emphasized that Kwon’s efforts to evade responsibility through repeated lies and misleading statements justify the extended prison term. The document states, “The magnitude and severity of Kwon’s crimes are difficult to overstate,” and that his criminal conduct and the resulting harm require a substantial sentence.

Earlier in the week, Kwon’s legal team proposed a sentence of five years, arguing that 12 years would be excessive. According to a report by Bloomberg, they highlighted that Kwon is also facing a separate trial in South Korea which carries a possible 40-year sentence. His lawyers noted that he has already served three years in custody, including over half that time under harsh conditions in Montenegro. They also mentioned his agreement to forfeit $19 million as part of a plea deal.

US prosecutors counter that Kwon’s plea for a five-year term is “utterly insufficient.” They assert that he downplays the seriousness of his offenses and exaggerates the expected impact of his South Korean trial on potential sentencing in the US. Clayton remarks on Kwon’s avoidance of factual admissions related to the Korean case, which makes outcomes uncertain.

The submission stresses, “Let it be clear: the half-truths, evasion, and outright lies were Kwon’s. They cannot be diminished or excused by shifting blame to the trading firm, Kwon’s attorneys, third-party trading firms, Montenegrin officials, or investors.” In addition to the prison term, US prosecutors urge the court to confirm the $19 million forfeiture agreed upon in the plea deal.