- US prosecutors request a minimum 12-year prison sentence for Do Kwon in relation to the Terra/Luna fraud case.
- Federal authorities highlight the extensive financial losses and Kwon’s deceptive actions as reasons for a lengthy penalty.
- Kwon’s lawyers argue that five years is sufficient, citing his ongoing South Korean trial that could result in 40 years imprisonment.
- The prosecutors reject Kwon’s sentencing proposal as minimizing the seriousness of his offenses and uncertain pending convictions.
- The court is expected to rule on sentencing December 11, with prosecutors seeking to uphold a $19 million forfeiture agreement.
Do Kwon, the founder of Terraform Labs, faces a US government sentencing recommendation of no less than 12 years in prison. This request stems from his role in the collapse of the fraudulent Terra/Luna cryptocurrency system. The sentencing submission was filed last night by State Attorney Jay Clayton.
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.
Kwon’s sentencing hearing is scheduled for December 11. The case continues to draw attention due to the extensive losses involved and the ongoing legal proceedings internationally.
For full details, see the official sentencing submission filed by State Attorney Jay Clayton here.
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