The U.S. district judge overseeing the sentencing of Terraform Labs founder Do Kwon has submitted critical questions that must be addressed before the upcoming court hearing. Judge Paul A. Engelmayer of the Southern District of New York has formally requested clarifications from both prosecutors and the defense team, focusing on international extradition logistics and victim participation in the proceedings.
Central to the judge's inquiry is the potential for Kwon to serve part of a U.S. prison sentence in South Korea, where he also faces separate charges. Judge Engelmayer specifically questioned what legal assurances would guarantee Kwon serves the full term mandated by the U.S. court if transferred to foreign custody. The court also seeks confirmation on whether defrauded investors from the Terra-Luna collapse wish to provide victim impact statements during the sentencing phase.
This legal development occurs as prosecutors advocate for a 12-year prison sentence, while Kwon's defense argues for a reduced five-year term. Additional points requiring clarification include whether Kwon's 17-month detention in Montenegro applies toward sentencing credit, the specific nature of his outstanding charges in South Korea, and the operational framework for victim compensation. The court's questions highlight the complex international dimensions of prosecuting major cryptocurrency fraud cases that span multiple jurisdictions.
