Do Kwon faces jail time in both the US and South Korea


Terraform Labs (TFL) co-founder and CEO Do Kwon faces multiple prison terms in the US and South Korea. This was stated by South Korean prosecutor Dan Sunhan, who is leading the investigation, in an interview with Bloomberg.

In his opinion, Kwon’s extradition to South Korea makes more sense “when it comes to restoring justice or reparations to victims.” He noted that more evidence is available to local authorities compared to their American counterparts, since they conducted most of the investigation into the collapse of the Terra ecosystem.

Sunhan also revealed that South Korea has already filed charges against a number of Kwon’s associates.

At the same time, he acknowledged the likelihood of a scenario in which the CEO of TFL will appear before a court in the United States, where he faces more than 40 years in prison.

“Until the convicted person is prosecuted for crimes in one of the jurisdictions, he is subject to several cross-border sentences,” the prosecutor explained.

In the event that the South Korean authorities do not report all the crimes that Kwon is accused of in the United States, the entrepreneur could potentially be sent to the States for prosecution after serving his sentence in his native country.

Sunhan expects Kwon’s sentence to be “the longest ever handed down in South Korea.”

The authorities have not yet located the CEO TFL cold wallet containing 10,000 BTC, but are monitoring the movement of funds from it.

Recall that in September 2022, South Korea issued an arrest warrant for Do Kwon and five other TFL employees on charges including violations of capital markets laws.

On March 23, Montenegrin police arrested Kwon while trying to fly from Podgorica airport to Dubai using forged documents. Recently, the entrepreneur was released under house arrest, the bail amounted to €400,000 ($436,000).

In May, South Korea called on Montenegro to send Kwon home. The United States is also seeking extradition for the head of the TFL, where he has been charged with fraud by the Securities and Exchange Commission and the New York Federal Attorney’s Office.

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