Do Kwon Seeks 5-Year Sentence Cap, Blames Jump Trading

• Terraform Labs co-founder Do Kwon requested a maximum 5-year prison term, citing “brutal” time served in Montenegro.
• In a strategic pivot, Kwon admitted to hiding Jump Trading’s role in the 2021 peg restoration, claiming he was pressured to keep it secret.
• Lawyers argue the $40B collapse was partly triggered by a “coordinated third-party attack,” citing Chainalysis data.

Do Kwon, the architect of the $40 billion Terra-Luna collapse, has formally requested the U.S. federal judge to cap his prison sentence at five years. In a sentencing memorandum filed Wednesday, Kwon’s legal team argued that anything longer would be “excessive” given the “brutal” conditions he endured during his detention in Montenegro. 

Analyst Alexander Osipovich has reviewed Kwon’s plea, highlighting its details and explaining why Kwon believes he could get a relatively lenient sentence.

Related: Do Kwon Loses Legal Battle Over $14.2M Singapore Penthouse Deposit

Kwon’s Honest Regrets

According to Osipovich, Kwon expressed regret for his attack on critics, noting that he misinterpreted their actions and saw them as attempts to slow him down. 

Instead of understanding the core of their criticism, he resorted to fighting back and attempting to hush the “naysayers.”

Implicating Jump Trading

The analyst noted that Do was sincere enough to admit lying about Jump Trading’s secret role in manipulating UST during a short de-peg in 2021. However, in trying to exonerate himself, Kwon has indicted Jump Trading, claiming that he wanted to own up, if not for Jump’s insistence on maintaining the secret.

Kwon’s guilty plea and the bargain for a lenient sentence were contained in a 23-page letter filed by his legal representatives on November 26. The filing’s summary proposed a review of the potential 12-year jail term to a maximum of five years. Kwon’s lawyers attributed the crash partly to coordinated trades by third-party firms exploiting vulnerabilities, citing academic papers and reports from Chainalysis. 

Third-Party Influence and Past Pains

Besides linking the crash to third-party influence, Kwon expressed remorse, claiming that he had almost chosen the option of committing suicide. Meanwhile, instead of attempting to escape justice, he explained that fleeing to Serbia was part of efforts to rekindle the business and re-establish Terraform Labs.

While trying to convince the court for a reduced sentence, Do highlighted his ordeal during a 2-year jail term in Montenegro. He considered it a brutal experience that caused him to lose a significant amount of weight.

Kwon is due for sentencing on December 11, when the court will review the plea and choose whether to consider it or not.

Related: Do Kwon Pleads Guilty to Fraud Charges in $40 Billion Terra LUNA Collapse Case