'Guilty plea' Do Kwon files brief in U.S..."A 5-year sentence is sufficient"

Do Kwon, founder of Terraform Labs, who is facing criminal trial in the United States on charges including fraud related to the issuance of the stablecoin TerraUSD (UST), stated that his sentence should not exceed five years.

According to Bloomberg on the 27th (local time), Do Kwon's legal team submitted a sentencing memorandum to U.S. authorities on the previous day (the 26th) arguing that the sentence related to the Terra-Luna incident should not exceed five years. Do Kwon's legal team also said the "plea bargain (a sentence reduction or adjustment in exchange for a guilty plea)" agreement under which U.S. prosecutors had planned to seek a maximum 12-year sentence for Do Kwon was "grossly excessive."

Do Kwon's legal team emphasized that Do Kwon had already been detained for about three years. The legal team said, "(Of the three years) he spent more than half in harsh conditions in Montenegro," and "(Do Kwon) also agreed, as part of the plea bargain, to the forfeiture of more than $19 million in assets and real estate."

The U.S. court plans to issue its final sentence for Do Kwon on the 11th of next month. Bloomberg reported, "The legal team also emphasized that Do Kwon faces trial in South Korea for the same criminal conduct and that South Korean prosecutors are seeking up to 40 years," and "the U.S. government is expected to submit its own sentencing recommendation soon."

Meanwhile, in August this year Do Kwon pleaded guilty and agreed with U.S. prosecutors to significantly reduce the maximum sentence. The combined maximum sentence for conspiracy to commit fraud (5 years) and wire fraud (20 years), to which Do Kwon pleaded guilty, is 25 years. However, under the plea bargain agreement, U.S. prosecutors have decided to seek a maximum sentence of 12 years for Do Kwon without additional indictments.