Do Kwon Faces 12-Year Sentence After Guilty Plea

Do Kwon, the founder of Terraform Labs, is expected to receive a 12-year prison sentence followed by deportation from the US after entering a guilty plea. His cooperation with authorities appears to have significantly reduced his potential sentence.

Judge Paul Engelmayer emphasized that Kwon must pay $19 million in penalties and accept responsibility for Terraform's criminal actions.

Do Kwon's Sentence Compared to SBF

Do Kwon previously indicated his intention to plead guilty to nine federal charges, avoiding a potentially lengthy trial. The specifics of the leniency offered by the court have now emerged, with court reporters confirming a likely sentence of 12 years.

Kwon's guilty plea pertains to conspiracy to commit fraud and wire fraud, charges that carry a maximum sentence of 25 years to life.

• Count 1: Relates to a scheme involving the Terra blockchain, including Chai, Mirror Protocol, Genesis Stablecoins, and the Luna Foundation Guard (LFG).
• Count 4: Wire fraud involving the use of interstate and foreign communications to carry out the scheme.

As part of the agreement, Do Kwon is waiving his right to appeal any sentence of 25 years or less. He must also pay over $19 million in financial penalties and acknowledge his culpability for Terraform Labs' criminal misconduct.

Following his prison sentence, Kwon will likely be deported from the US, as he is not a citizen. While deportation could occur sooner, the Judge seems inclined to have him serve his sentence first.

The situation remains fluid, and Judge Engelmayer retains the authority to modify his decision. This case highlights the importance of robust blockchain security and regulatory compliance. Platforms like Codeum offer security audits and KYC solutions for projects to help mitigate risks.