Do Kwon seeks a sentence of no more than five years in the U.S. for the charges related to the TerraUSD collapse, while South Korea aims to impose a 40-year prison term.

According to Bloomberg, Do Kwon, co-founder of Terraform Labs Pte., stated that he should be sentenced to no more than five years in prison in the United States for his involvement in the fraud case related to the $40 billion collapse of the TerraUSD stablecoin in 2022.

Do Kwon admitted to conspiracy and telecommunications fraud in August and avoided trial after being extradited from Montenegro to the United States. Previously, he was arrested and convicted in Montenegro for using a forged passport while on the run.

In the sentencing recommendations submitted later on Wednesday, Do Kwon's lawyer stated that while the prosecution agreed in the plea deal not to seek more than 12 years of imprisonment, this “far exceeds the sentence required to serve justice.”

Defense lawyers claim that Do Kwon has been imprisoned for nearly three years, “more than half of which has been spent under harsh conditions in Montenegro,” and has suffered greatly due to his crimes. As part of a plea agreement, he also agreed to forfeit assets and some properties worth over $19 million.

The lawyer pointed out that Do Kwon is still facing trial in South Korea for the same actions, with the South Korean prosecution seeking a 40-year prison sentence. U.S. Manhattan District Judge Paul Engelmayer is scheduled to sentence Do Kwon on December 11, and the government is expected to submit sentencing recommendations soon.