Infamous Terra LUNA Founder To Face Jail In the US and South Korea

Do Kwon, the disgraced founder of the Terra LUNA ecosystem, which crashed last year in a $40 billion erosion of investors’ wealth, is likely to spend most of his life in the jails of South Korea and the US.

Both countries have been seeing Kwon’s extradition on charges associated with the collapse of LUNA and other tokens he created. Last month, South Korean authorities were already preparing for Do Kwon’s extradition.

After staying as a fugitive for almost a year, Kwon was arrested earlier this year in Montenegro in March. Dan Sunghan, who heads the probe from Kwon said that it’s possible for a person to be tried and sentenced in both jurisdictions on distinct charges. Dan currently serves as the director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service. Speaking to Bloomberg News, he said:

They could then “be extradited to the US and face trial there, and then have the sentence executed in South Korea and the US after that”.

As per Dan, Terra’s disgraced founder could get a record sentence of up to four decades, on charges of financial fraud.

Charges Faced By Terra Founder Do Kwon

Earlier this year, the US Securities and Exchange Commission (SEC) accused Do Kwon as well as Terraform Labs of fraud. Later, the US prosecutors followed up with an indictment.

the charges filed by South Korea include breaches of capital-markets law. The legal representative of Do Kwon previously stated that fraud charges slapped by the US SEC are unfounded. They also rejected the allegations from prosecutors in Seoul.

Dan said: “This is the largest financial fraud or financial securities fraud case that has ever happened in South Korea”. He added that Kwon should be extradited to the Asian nation first.

According to the SEC’s lawsuit, Kwon and Terraform Labs moved more than 10,000 Bitcoin from their failing project. They then converted some of these tokens into cash through a Swiss bank. The tokens were stored in a “cold wallet,” which is a secure storage method that is not connected to any digital asset exchange. The SEC stated that Kwon and Terraform Labs accessed this wallet periodically starting from May of the previous year.

Dan added: “We can see that it’s coming out of the wallet, but we are not aware who might be in possession of the cold wallet or how they’re withdrawing it, on what methods”.

So far, the prosecutors have seized a total of 246.8 billion won ($190 million) in relation to the case. They are about to gain control of an additional 31.6 billion won.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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