International legal mystery: Will Do Kwon actually spend less time behind bars?

The Do Kwon case, co-founder of Terraform Labs, has become one of the most complex legal challenges in the cryptocurrency industry. Although a US court sentenced him to 15 years in prison, a subtle legal nuance in the Korean justice system could dramatically change his fate. This issue opens a broader discussion about how international legal systems cooperate—or fail to—in the era of digital assets.

Article 7 as a key element of the puzzle

The heart of the entire case lies in the provisions of South Korea’s Criminal Code, specifically Article 7. This mechanism gives judges considerable flexibility in sentencing. It allows for the crediting of time served in foreign prisons toward a sentence imposed in the home country.

However, this regulation does not automatically shorten the sentence. The judge must assess how many years from the American detention will actually be credited. This means the outcome depends on the court’s discretion and the quality of the presented arguments. According to reports from Beopryul Shinmun, a specialized publication dealing with legal issues, Do Kwon indeed has a chance for such credit.

Potential pathway for transfer

Additionally, South Korean courts face the prospect of a maximum sentence—ranging from five years to life imprisonment—for financial crimes of this scale. The investor losses are estimated at around 40 billion dollars, signaling the scale that judges will need to consider.

At the same time, prosecutors in the United States allegedly agreed not to oppose the transfer of Do Kwon after serving half of his American sentence. This agreement practically opens the possibility of his transfer to South Korea earlier than would be possible under normal circumstances. Such negotiations between the legal systems of two countries demonstrate how mature diplomatic cooperation on cryptocurrency issues has become.

Challenges on the road to realization

However, implementing this scenario will not be easy. The process requires formal requests, approval by courts on both sides, and compliance with extradition treaties between the US and South Korea. Each step could introduce new complications.

Moreover, the ruling issued by Korean courts will also depend on the specific charges. The national prosecutor’s office may bring charges related to Do Kwon’s activities within the country, which could be treated much more severely. The collapse of Terra/LUNA is not just an international matter— for South Korean investors, it was a disaster on their own doorstep.

What will be the actual outcome?

Do Kwon’s situation symbolizes a deeper reality of modern law enforcement: the lack of uniform international standards. One jurisdiction sees the case through one lens, another through a different one. For this former founder, it means that his final sentence will be the result of many legal, political, and diplomatic factors.

Will the sentence actually be shortened? It could happen, though it is not certain. Months and years ahead will show how this international saga unfolds. For the entire cryptocurrency industry, this is a key test of how global authorities respond to spectacular failures of financial platforms.

Questions worth asking

What sentence was Do Kwon convicted of in the United States?
15 years in prison for fraud related to Terraform Labs.

What law could shorten his sentence in South Korea?
Article 7 of the Criminal Code allows for crediting time served in foreign prisons.

Is the transfer certain?
No. It requires approval by courts in both countries and compliance with extradition treaties.

What sentence could he face in his home country?
From 5 years to life imprisonment, depending on the charges.

Will this set a precedent for other cryptocurrency cases?
Yes. This case could establish standards for future international disputes involving digital assets.