Do Kwon Seeks 5-Year Sentence in TerraUSD Fraud Case

Crypto
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author: CryptoNews

date: November 27, 2025

1 min. read

Do Kwon, co-founder of Terraform Labs, is advocating for a prison sentence of no more than five years in the United States, according to a sentencing opinion filed in the Southern District Court of New York. The request stems from fraud charges related to the dramatic collapse of the TerraUSD (UST) stablecoin in 2022. Kwon's legal team argues that the prosecution's proposed 12-year sentence is excessive, considering Kwon's prior detention of approximately three years, including a significant period spent in challenging prison conditions in Montenegro. They also highlighted Kwon's agreement to recover and liquidate assets exceeding $19 million as a mitigating factor. The final sentencing decision for Do Kwon is scheduled for December 11th. The outcome will likely impact the ongoing legal battles surrounding the Terra/Luna ecosystem and set a precedent for future cryptocurrency fraud cases. ```