Do Kwon, co-founder of Terra in South Korea, pleads guilty and will be transferred overseas after serving half of his sentence in the United States

ChainCatcher news, according to Reuters, Terraform Labs founder Kwon Do-hyung has been indicted on fraud charges. He has reached an agreement with U.S. prosecutors to serve half of his sentence in other countries in exchange for admitting to some charges. This agreement allows Kwon to complete the remaining sentence in South Korea and other countries.

As part of the $4.55 billion settlement agreement he and Terraform reached with the U.S. Securities and Exchange Commission, Kwon agreed to pay a $80 million civil penalty in 2024 and is banned from engaging in cryptocurrency trading.

He is also facing fraud charges and other offenses in South Korea. Additionally, prosecutors have decided to seek a 12-year prison sentence for the eight charges against him: conspiracy to commit fraud and wire fraud, to which he has pleaded guilty. The maximum combined sentence for these two charges is 25 years.