The U.S. Department of Justice is seeking a 12-year prison sentence for Terra founder Do Kwon.

Source: TokenPost Original Title: US Department of Justice Seeks 12-Year Prison Sentence for Terra’s Do Kwon… “Should Match SBF Case for Consistency” Original Link: https://www.tokenpost.kr/news/people/312032 The US Department of Justice (DOJ) has recommended a 12-year prison sentence for Terra founder Do Kwon.

Key Points:

• The DOJ submitted a sentencing memorandum to the Southern District Court of New York, requesting the statutory maximum sentence of 12 years in prison for Do Kwon.
• The sentencing recommendation is based on Do Kwon’s plea agreement with prosecutors in August, in which he admitted to major charges including wire fraud.

Prosecutors’ Tough Stance:

The DOJ emphasized the need for strict punishment for Do Kwon, citing the “disparity in sentencing” in other major cryptocurrency fraud cases. Specifically:

• Referenced the case of FTX founder Sam Bankman-Fried (SBF), who was sentenced to 25 years in prison.
• Cited the case of former Celsius CEO Alex Mashinsky, who received a 12-year sentence.
• Pointed out that the Mashinsky case involved victim losses of about $5 billion, while the Do Kwon fraud case involved losses of $40 billion.
• Argued that imposing the maximum 12-year sentence under the plea agreement would be a “very lenient punishment.”

Defense’s Argument:

Do Kwon’s legal team submitted documents arguing that a 5-year prison term would be appropriate, citing:

• The Terra/Luna collapse was not solely Do Kwon’s doing, but involved a systematic short attack by third-party institutions and structural vulnerabilities in the market.
• Requested that the time Do Kwon spent imprisoned in Montenegro be considered for sentence reduction.

Next Steps:

Sentencing is scheduled for December 11. Do Kwon, now 34, would be released in his 40s if sentenced to 12 years. The DOJ is also seeking forfeiture of approximately $19 million in illegal proceeds.

The case is drawing significant attention in the cryptocurrency industry, as it concerns the final legal judgment in the largest crypto fraud case in history.