Do Kwon Seeks 5-Year Cap in U.S. Sentence Over Terra Collapse
Terraform Labs co-founder Do Kwon has petitioned a U.S. judge to limit his prison term to five years for wire fraud and conspiracy charges tied to the 2022 collapse of TerraUSD. His legal team contends that nearly three years spent in Montenegrin detention—described as "brutal conditions"—alongside financial penalties constitute sufficient punishment.
The dramatic reversal comes after Kwon pleaded guilty in August 2025 to reduced charges, avoiding trial on seven other counts. The Terra ecosystem implosion erased $40 billion in value, sending shockwaves through crypto markets that still resonate today.
Prosecutors must now weigh whether Kwon's pre-trial hardships merit leniency against the scale of investor losses. The case has become a benchmark for regulatory actions against algorithmic stablecoins.
