After entering a guilty plea, Do Kwon will likely receive a 12-year prison sentence followed by deportation from the US. His cooperation with the courts has apparently yielded significant leniency.
The presiding Judge, Paul Engelmayer, emphasized that Kwon must pay $19 million in penalties and accept culpability for Terraform’s criminal activities.
Do Kwon Will Get a Lighter Sentence Than Sam Bankman-Fried
Do Kwon signaled his intent to plead guilty to nine federal charges yesterday, incurring a potentially lengthy prison sentence. This process would avoid a lengthy trial.
However, it was unclear how the court would exercise leniency in light of his stance. Today, court reporters have followed the Judge’s comments, determining that a 12-year sentence is likely.
Specifically, Do Kwon agreed to plead guilty to conspiracy to commit fraud and wire fraud from the indictment. These charges could yield a sentence of 25 years to life.
- Count 1: Involves a scheme tied to the Terra blockchain, including Chai, Mirror Protocol, the 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.
One, of course, is agreeing not to appeal the court’s verdict. Otherwise, Do Kwon will also have to pay over $19 million in financial penalties and accept responsibility for all Terraform Labs’ criminal misconduct.
Additionally, after this sentence is over, he will likely be deported from the US. Kwon is not a citizen, and he could be deported sooner. However, it seems like the Judge is inclined to have him carry out his sentence first.
This story is developing, however, and Judge Engelmayer could change his decision in the future.
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