DOJ Seeks 12-Year Sentence for Terra Founder Do Kwon Amid Comparisons to Other Crypto Fraud Cases
The Department of Justice is seeking the maximum 12-year sentence for Terra founder Do Kwon under an August plea deal, in which Kwon pleaded guilty to conspiracy to defraud and wire fraud. Although Kwon could face up to 25 years in federal prison, prosecutors agreed not to seek more than 12 years to incentivize a guilty plea and avoid a jury trial. Sentencing is scheduled for December 11, 2025, in Manhattan before U.S. District Judge Paul Engelmayer.
DOJ officials argue that a stiffer sentence is necessary to prevent unwarranted sentencing disparities, particularly in comparison to Sam Bankman-Fried, who was sentenced to 25 years for similar fraud and conspiracy charges. Terra's collapse in 2022 wiped out approximately $40 billion in value and contributed to a broader crypto-market crisis that also impacted firms like FTX.
Kwon, a 34-year-old Korean national, was arrested in Montenegro in 2023 and extradited to New York earlier in 2025 following warrants issued in both the U.S. and South Korea. Prosecutors have also drawn parallels with Celsius founder Alex Mashinsky, who received a 12-year sentence in 2025, emphasizing that the financial losses tied to Kwon's case vastly exceed those in the Mashinsky case.
