Terraform Labs Founder Do Kwon Faces Legal Crossfire in US and South Korea
US District Judge Paul Engelmayer has delayed sentencing for Terraform Labs co-founder Do Kwon, demanding clarity on parallel charges in South Korea. The disgraced crypto executive pleaded guilty in August to wire fraud and conspiracy related to Terra's $40 billion collapse, with prosecutors pushing for a 12-year sentence while his defense caps requests at five years.
Montenegro's four-month detention of Kwon for passport fraud remains a contested factor in sentencing calculations. Defense attorneys warn their client could face up to 40 years in Korean prisons, where authorities issued an arrest warrant in 2022. Judge Engelmayer expressed particular concern about early release scenarios should Kwon serve partial sentences across both jurisdictions.
