Do Kwon Sentencing: Judge Demands Clarity on Looming 40-Year South Korea Prison Term
US District Judge Paul Engelmayer has requested prosecutors and protection legal professionals for detailed clarification on a sequence of unresolved points forward of Terraform Labs co-founder Do Kwon’s sentencing.
This contains the potential for the crypto entrepreneur dealing with a further 40-year jail time period in South Korea after serving time within the United States.
The decide issued the order on December 8, laying out a number of questions that he needs answered earlier than the December 11 listening to.
The submitting exhibits that the courtroom is weighing how Kwon’s international authorized publicity, earlier detention, and the mechanics of worldwide prisoner switch packages might have an effect on the punishment imposed in New York.
Court Seeks Clarity on Kwon’s Potential 40-Year Korean Prison Term
The decide’s first set of questions focuses on South Korea’s ongoing legal case in opposition to Kwon.
He requested each events whether or not they have any dependable details about the possible end result of the costs he faces there, whether or not any agreements have been made with Korean authorities, and what sentencing ranges apply if he’s convicted.
South Korean prosecutors beforehand mentioned they might search as much as 40 years in jail for a similar conduct that types the idea of the US case.
The courtroom additionally requested whether or not a Korean sentence may run concurrently or consecutively with a US sentence, a element that would affect the ultimate phrases.
The order additionally seeks clarification on the way to deal with the almost two years Kwon spent in custody in Montenegro. He was arrested in March 2023 whereas touring beneath a false passport and remained detained till extradition.
The decide needs to know whether or not the Bureau of Prisons will credit score any portion of that 21-month interval towards his US time period and whether or not the federal government’s suggestion of a 12-year sentence was based mostly on the belief that none of that point will depend.
Federal prosecutors have already urged the court to impose the full 12 years permitted beneath Kwon’s plea settlement.
Defense Pushes Back as Prosecutors Call TerraUSD Collapse “Colossal”
They described the TerraUSD collapse as “colossal in scope,” citing the broader market chain response that contributed to the downfall of main corporations, together with Sam Bankman-Fried’s FTX.
Kwon pleaded guilty in August to conspiracy and wire fraud, admitting that he made false statements about TerraUSD’s stability mechanisms and hid Jump Trading’s function in supporting the stablecoin throughout a 2021 depeg occasion.
US agrees to advocate a 12-year jail sentence and a $19m high quality for Do Kwon after he has pleaded responsible to wire fraud and conspiracy#DoKwon #TerraUSD https://t.co/ktCCrKzob4
— Cryptonews.com (@cryptonews) August 12, 2025
Kwon’s lawyers have asked for a five-year term as an alternative, arguing that the time he spent in Montenegro was served in “brutal situations” and will weigh closely within the courtroom’s determination.
They additionally level to the chance that he shall be extradited to South Korea after finishing his US sentence, the place he faces a for much longer potential punishment.
The protection says that imposing the complete really useful time period would end in an excessively lengthy mixed interval of imprisonment.
Judge Seeks DOJ Clarification on Victim Compensation and Asset Forfeiture
The decide’s order exhibits he’s taking that chance significantly. He requested each side to elucidate whether or not supervised launch would even matter if Kwon is prone to be faraway from the United States.
He additionally questioned what ensures the U.S. would have that one other nation would implement the remainder of Kwon’s sentence if he’s transferred abroad.
Prosecutors have already mentioned they are going to help a switch request as soon as Kwon serves half of his sentence.
But the decide famous that these transfers often require detailed suggestions to the Bureau of Prisons earlier than they will transfer ahead.
The submitting additionally factors to a number of administrative issues tied to forfeiture and sufferer funds.
The decide requested the Justice Department to make clear how its remission course of would determine which victims qualify for compensation from the seized belongings.
This query is very vital as a result of the losses span a number of international locations, and no restitution order was requested within the case.
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