From Crypto Success to Jail Time: The Do Kwon Story
In Brief
South Korea’s prosecutor indicated Do Kwon might face multiple terms in his home country and the United States. Kwon was recently granted bail in Montenegro, allowing him to remain free under house arrest. As the extradition decision is pending, Kwon and Han are legally obligated to reside at ChangJoon’s designated residence in Montenegro.
The case against Terraform Labs CEO Do Kwon, spearheaded by South Korea’s chief prosecutor, has highlighted the potential for multiple prison terms in both his home country and the United States.
Recently, a Montenegrin judge granted Kwon’s bail petition, which places him under house arrest while he awaits trial. The decision regarding extradition is yet to be made, which mandates that Kwon and Terraform Labs’ CFO Han Chang-Joon remain at Chang-Joon’s designated residence in Montenegro.
Chief prosecutor Dan Sunghan, in an interview with Bloomberg, argued that bringing Kwon back to South Korea would be more beneficial for justice and for compensating the victims. He noted that the majority of the preliminary investigation into the collapse of the Terra ecosystem took place in South Korea, where local authorities had an easier time gathering evidence compared to their American counterparts.
The Do Kwon Story
Sunghan shared that South Korean authorities have already filed charges against several individuals associated with Kwon. He added that there’s a chance Kwon could face trial in both the United States and South Korea. If an individual is found guilty of crimes in multiple countries and isn’t prosecuted for all of them, they could end up serving multiple sentences abroad.
This could mean that Kwon may face extradition to the US for trial after completing his sentence in South Korea. The total sentence could extend beyond 40 years if South Korean authorities do not account for all the charges against Kwon in the US. Sunghan claimed that this case is the most significant instance of financial fraud or securities fraud in South Korean history.
Meanwhile, South Korean authorities are investigating Binance’s trading activities within the country, following the exchange’s legal disputes with the SEC. South Korea’s Financial Service Committee (FSC) is examining Binance’s purchase of Gopax. This is a local cryptocurrency trading platform. Binance’s alleged violations of securities laws have raised concerns. The SEC’s efforts to freeze Binance’s assets have also caused worries. These issues have cast doubt on the approval of the Gopax acquisition request. The fact that many US assets are involved makes the situation even more complex.
- The Montenegrin court granted bail to Do Kwon, the co-founder of Terra Labs, to avoid extradition to South Korea. The State Prosecutor’s Office has appealed the decision.
Read more related articles:
- Terra Founder Do Kwon faces arrest as South Korean court issues arrest warrant
- Solana raises $100 million for South Korea’s Web3 projects
- Do Kwon, Сo-founder and CEO of Terraform Labs
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
