Do Kwon Seeks Reduced Prison Sentence Ahead of TerraUSD Case Ruling
Do Kwon, co-founder of Terraform Labs, has petitioned a Manhattan federal judge for a prison sentence not exceeding five years in connection with the collapse of TerraUSD. The stablecoin's implosion erased approximately $40 billion in market value, marking one of crypto's most catastrophic failures.
Kwon's legal team cites extenuating circumstances, including harsh detention conditions in Montenegro and his agreement to forfeit $19 million, as grounds for leniency. Prosecutors had previously recommended a 12-year term under plea deal terms.
The defense contends any sentence beyond five years WOULD be disproportionate, particularly given Kwon's pretrial custody experience. Court filings describe substandard conditions during his Balkan detention, framing it as punitive hardship endured before sentencing.
