Do Kwon proposes a lower sentence in the lawsuit related to the Terra collapse

MEVSandwichMaker · 2025-12-26T19:18:16+00:00

Do Kwon, co-founder of Terraform Labs, has filed for a reduced sentence, proposing 5 years instead of the 12 years sought by prosecutors. He cites previous harsh conditions in custody and offers to repay $19 million to victims. The case, stemming from the 2022 TerraUSD crisis, will impact future cryptocurrency regulations. The court's decision is expected on December 11.

MEVSandwichMaker

2025-12-26 19:18:16

Abstract generation in progress

In the latest development of the globally watched case, Terraform Labs co-founder Do Kwon has submitted a plea for leniency to the court. Instead of the 12-year sentence requested by prosecutors, Do Kwon’s defense is proposing a sentence of 5 years in prison.

According to information from BitcoinWorld, Do Kwon’s legal arguments emphasize that he has already endured three years of detention. This period includes time spent in Montenegro under extremely harsh conditions. Additionally, the defendant’s side also stated that Do Kwon has committed to repaying 19 million USD and liquidating all personal assets to compensate the victims.

This case originates from the crisis of TerraUSD (UST) that occurred in 2022, a shocking event that rocked the entire cryptocurrency industry. The collapse led to the heavy loss of millions of investors and made Do Kwon the focal point of controversy regarding responsibility in the digital finance sector.

The court is expected to deliver its final verdict on December 11. The outcome of this case will not only affect Do Kwon but also set important legal precedents for future regulation and oversight of digital currencies.

LUNA-0,43%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.