TechFlow news, December 9 — According to Financefeeds, Terraform Labs founder Do Kwon will be sentenced Thursday in New York, but presiding Judge Paul Engelmayer has asked prosecutors and defense attorneys to clarify the details of charges he faces in South Korea.
Do Kwon pleaded guilty in August to two felony counts—wire fraud and conspiracy to commit fraud—stemming from his role in the 2022 collapse of Terraform Labs, an event that triggered broader market declines. The judge inquired about the "maximum and minimum penalties" Kwon might face in South Korea, as well as whether both sides agree that time served in pretrial detention in Montenegro should not count toward a U.S. sentence.
Kwon's attorneys stated that even if the judge imposes a sentence equal to time already served, Kwon would "immediately return to pretrial detention to face criminal charges in South Korea," where he could face up to 40 years in prison. U.S. prosecutors are seeking at least 12 years in prison, while the defense is pushing for no more than five. Prosecutors claim the losses caused by Kwon exceed the combined total caused by Sam Bankman-Fried, Alex Mashinsky, and Karl Sebastian Greenwood.
