Do Kwon, the founder of Terraform Labs, faces over 40 years in prison in South Korea for his responsibility in the collapse of Terra (LUNA), which caused the loss of more than $40 billion of cryptocurrencies. The South Korean authorities are thus seeking to obtain his extradition, although the United States is also interested.
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More than 40 years of imprisonment for Do Kwon?
According to a report from the Wall Street Journal, the head of the South Korean prosecutorial team in charge of the investigation of the collapse of Terra (LUNA), Dan Sung-Han, expects that the sentence incurred by Do Kwon (real name Kwon Do-hyung) exceeds 40 years in prison.
In doing so, the founder of Terraform Labs would become the individual with the heaviest sentence in South Korea’s financial historyovertaking Kim Jae-Hyun, the CEO of fund Optimus Asset Management, who was sentenced to 25 years in prison last July after orchestrating what is considered one of the biggest financial frauds in the country. .
Nevertheless, this would imply that Do Kwon be judged in his native land, which is not yet won. Currently, the South Korean authorities are neck and neck with the American authorities in order to determine which court will obtain his extradition following his recent arrest in Montenegro for possession of false identity documents.
According to Dan Sung-Han, Do Kwon’s extradition to South Korea would be the best way to bring justice to victims harmed by the collapse of UST and LUNA. Absolutely staggering losses, more than 40 billion dollars of cryptocurrencies having been volatilized in record time.
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The investigation is ongoing
According to the head of the investigation, some fraudulent actions did indeed take place in the United States, but the bulk of the activity relating to the Terra ecosystem did indeed take place in South Korea. Thus, the investigation is following its course and seems to be bearing fruit, since 7 individuals close to Terra have recently been charged, including Daniel Shinwho co-founded the company alongside Do Kwon.
The charges against them include fraud and violation of financial market laws, breach of trust and cases relating to bribes.
On the US side, Do Kwon faces criminal charges from federal prosecutors, parallel to a civil action launched by the Securities and Exchange Commission (SEC). The company’s attorneys denied the allegations, saying UST and LUNA were not SEC-regulated assets and that Terra had never offered its products directly to US residents.
According to most legal experts, South Korea should have priority in the order of extradition requests, especially because in addition to having been the cradle of Terraform, South Korea has an extradition agreement with Montenegro. In addition, South Korean authorities have evidence and information “not easily obtainable” in the United States.
Either way, Do Kwon’s extradition shouldn’t be around any time soon. Given the charges currently pending against him in Montenegro, the founder of Terraform Labs should incur at least 3 to 5 months in prison.
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Source: Wall Street Journal
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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