Judge Seeks Assurances on Do Kwon’s Prison, Victims and Foreign Transfer Ahead of Dec. 11 Sentencing

A U.S. federal judge in the Southern District of New York has asked prosecutors and defense counsel detailed questions ahead of Terraform Labs co‑founder Do Kwon’s Dec. 11 sentencing. Key issues include whether Kwon faces additional criminal exposure in South Korea for the same conduct, whether any agreements exist between U.S. and Korean authorities, and whether a Korean sentence would run concurrently or consecutively with a U.S. term. The court also seeks clarification on credit for roughly 21 months Kwon spent detained in Montenegro and whether the government’s recommendation—a 12‑year prison term and a $19m fine—assumes that time will or will not be credited. The defense is urging a five‑year sentence, citing harsh detention conditions in Montenegro and potential further punishment in South Korea. The judge asked whether victims wish to speak at sentencing, how victim compensation and asset forfeiture should be administered across jurisdictions, whether supervised release can apply if Kwon is removed from the U.S., and practical assurances that foreign jurisdictions would enforce remaining sentences. Parties must respond by Dec. 10. For traders: the hearing clarifies cross‑border enforcement and restitution mechanics in one of the largest crypto fraud cases tied to the 2022 collapse of Terraform (once valued at over $50bn), but does not introduce new market‑moving tech or protocol developments.