Terra Founder Do Kwon Pushes for Five-Year Sentence as He Faces Much Harsher Charges at Home
Do Kwon, the embattled co-founder of Terraform Labs, has requested a five-year prison sentence in the United States, a move that stands in sharp contrast to the significantly heavier penalties he faces in his home country, according to .
Kwon’s legal troubles trace back to the dramatic collapse of the $40 billion Terra ecosystem in 2022, a failure that wiped out tens of billions of dollars in market value and sent shockwaves through the broader cryptocurrency industry.
The implosion of the algorithmic stablecoin TerraUSD and its sister token LUNA erased investor confidence, triggered liquidations across decentralized finance platforms, and intensified regulatory scrutiny worldwide.
Now before a U.S. federal court, Kwon’s defense argues that a five-year sentence would be proportionate, citing the time he has already spent in detention and his cooperation with authorities. His legal team maintains that an extended sentence would be excessive, especially considering asset forfeitures and ongoing legal consequences that extend beyond American borders.
As , uncertainty remains over how his cases across diverse countries will ultimately be resolved.
What is clear, however, is that the Terra fallout continues to influence how regulators, investors, and developers approach stablecoins, algorithmic models, and accountability in decentralized finance.
Legal Journey From Denial to a Plea Deal
Following his extradition to the United States, Do Kwon initially rejected the charges brought against him. His position later shifted, and he entered , a move that marked a turning point in the case and narrowed the court’s focus to sentencing rather than liability.
As that phase approaches, Kwon’s defense is pushing for a five-year term, citing time already spent in detention and cooperation with authorities.
Prosecutors, however, continue to frame the Terra collapse as one of the most damaging failures in crypto history, keeping the stakes of the final ruling high.
South Korea’s Case Keeps the Pressure On
Even as the U.S. process moves toward reanswer, Kwon’s legal exposure back home remains unresolved.
South Korean authorities are pursuing separate charges connected to the identical collapse, with penalties that could total up to 40 years in prison if he is convicted.
This dual-track prosecution highlights the international reach of crypto enforcement. Any decision by a U.S. judge does not shield Kwon from further action abroad, leaving his long-term fate tied to courts beyond American jurisdiction.
