2023-06-08 14:09:35
Terraform Labs Co-Founder and CEO, Do Kwon might face jail time in both the US and South Koreaas revealed by a South Korean prosecutor leading the investigation.
Do Kwon is currently under house arrest following being detained by the Montenegrin authorities while trying to leave the country with fraudulent documents. Shortly therefollowing, the US and South Korean authorities filed extradition requests for his return to their respective countries.
In a interview con Bloomberg, South Korean prosecutor Dan Sunghan expressed his belief that Kwon’s extradition to South Korea would be the most appropriate course of action in terms of bringing justice to the victims and recovering damages.. Sunghan stressed that most of the initial research into the collapse of Terra’s ecosystem took place in South Korea, and local authorities have access to more evidence than their US counterparts.
TRIAL IN TWO JURISDICTIONS: A VIABLE SCENARIO
When asked regarding the possibility of Do Kwon facing trials in both the United States and South Korea, Sunghan acknowledged that such a scenario is indeed an option. If South Korean authorities do not address all of the charges Kwon faces inside the United States, it is possible that following serving his sentence in South Korea, Do Kwon may be extradited to the United States for prosecution, which might result in a cumulative sentence exceeding 40 years..
According to Sunghan, Kwon’s sentence is expected to be the longest ever handed down in South Korea. The prosecutor described the case as “the largest financial fraud or financial securities fraud to have happened in South Korea.”
ACCUSATIONS AGAINST DO KWON AND TERRA
Do Kwon, co-founder of Terraform Labs Pte. Ltd., who developed the TerraUSD stablecoin. The collapse of this project in May 2022, involving at least $40 billion, contributed to a significant drop in the cryptocurrency market. The US Securities and Exchange Commission (SEC) has charged Kwon and Terraform Labs with fraud, with subsequent indictments by US prosecutors.
In South Korea, Do Kwon faces charges related to violations of capital markets law. Meanwhile, her defense lawyers have previously refuted accusations by US and South Korean prosecutors, stating that the charge of securities fraud in the United States is without foundation.
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