Kwon Do-hyung Sentenced to 15 Years in U.S. Court Over 'Terra Incident'

The court has sentenced Do-Hyung Kwon, founder of Terraform Labs, to 15 years in prison for charges including fraud related to the issuance of the stablecoin 'Terra USD' in the United States.

On the 11th (local time), Judge Paul Engelmayer of the U.S. District Court for the Southern District of New York handed down this sentence to Kwon.

On March 23, 2024, the police are escorting Do-Hyung Kwon, who has completed his sentence for document forgery in Montenegro. Photo by Reuters Yonhap News

Previously, in August, Kwon pleaded guilty to conspiracy to commit fraud and wire fraud. As a result, the sentencing proceeded immediately without a separate trial to determine guilt or innocence.

The U.S. prosecutors, under a plea bargain agreement, sought a maximum sentence of 12 years for Kwon. Kwon's attorney requested a sentence of no more than five years, citing his time in detention in Montenegro and the fact that he faces additional criminal charges in South Korea.

In addition to the prison sentence, prosecutors agreed under the plea bargain to forfeit 19 million dollars and certain other assets from Kwon.

U.S. federal prosecutors indicted Kwon on a total of eight charges in March 2023 after he was apprehended in Montenegro, including securities fraud, wire fraud, commodities fraud, and conspiracy to manipulate market prices. At the end of last year, Kwon was extradited from Montenegro to the United States, and a charge of conspiracy to commit money laundering was added. If found guilty on all nine charges, Kwon could have faced up to 130 years in prison. Kwon initially pleaded not guilty but changed his plea in August, admitting guilt to two charges.

The U.S. Department of Justice stated that, under the plea bargain agreement, it would not oppose Kwon's application for the International Prisoner Transfer Program if he serves half of his sentence and complies with the plea bargain conditions. Therefore, Kwon may be extradited to South Korea at his request after serving half of his sentence.