US government prosecutors have asked a judge to sentence Do Kwon to no less than 12 years in prison for Terraform Labs’ role in the fraudulent Terra/Luna system.
State Attorney Jay Clayton filed the sentencing submission last night, arguing that Kwon’s “colossal” fraud, his attempts to shirk responsibility through a brazen string of lies, and the “sheer” loss of funds involved, warrant the lengthy sentence.
“The magnitude and severity of Kwon’s crimes are difficult to overstate,” Clayton argued, adding that his “misconduct, the consequences of his crime, and his reaction to the discovery of his scheme all warrant a substantial prison term.”
Earlier this week, Kwon’s lawyers requested a five-year sentence. Bloomberg reports that his legal team argued that the 12 years is “far greater than necessary” to achieve justice.
They noted that the Terraform founder still faces another trial in South Korea which carries a potential 40-year prison sentence.
Additionally, they argued that he’s already served three years “with more than half that time in brutal conditions in Montenegro,” and has agreed to a $19 million forfeiture.
Prosecutors claim Kwon is ‘underselling’ his crimes
US prosecutors argue that Kwon’s request for a sentence of just five years is “utterly insufficient.”
“In support of his request, Kwon undersells the gravity of his crimes, and he oversells the certainty of his conviction and sentence in connection with the pending charges in Korea,” prosecutors claimed.
Clayton argues that despite the potential sentence in Korea, Kwon has “painstakingly avoided factual concessions related to that case, rendering the outcome of those proceedings both unknown and unknowable.”
Read more: Do Kwon documents reveal astounding stupidity of his arrest
“Let it be clear: the half-truths, evasion, and outright lies were Kwon’s. They cannot be diminished or excused by shifting blame to the trading firm, Kwon’s attorneys, third-party trading firms, Montenegrin officials, or investors,” the sentencing submission reads.
In addition to the 12-year sentence, US prosecutors asked the court to uphold the $19 million forfeiture that Kwon agreed to in his plea deal. He’s still scheduled to be sentenced on December 11.
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