Reading 3 min Views 1 Published Updated
Terraform Labs co-founder and CEO Do Kwon could face multiple convictions in the US and South Korea, according to a senior South Korean prosecutor leading the investigation.
It is understood that Kwon is currently serving bail on a house in Montenegro after his offer of bail was granted on June 5 by a Montenegrin court. Both Kwon and Terraform Labs CFO Han Chang-Jun are required by law to reside in Chang-Jun’s legal home. residence in Montenegro at the time of the decision on extradition.
Speaking to Bloomberg, Dan Sunhan said Kwon’s extradition to South Korea makes more sense “when it comes to doing justice or redressing victims.”
Most of the main investigation into the collapse of the Terra ecosystem was conducted in South Korea, according to Sunhan. He also stated that local authorities have access to more evidence than their American counterparts.
“The most effective way to get justice is to have an investigation and trial in South Korea.”
Sunhan also highlighted the fact that the South Korean authorities have already filed charges against a number of Kwon’s associates.
However, when asked about the possibility of Kwon having to face trial in both the US and South Korea, Songhan replied that “such a scenario is possible.” He explained that a convict is subject to several cross-border sentences when he has not yet been prosecuted for some crimes in one of the jurisdictions.
Thus, Sunhan said that if the South Korean authorities do not report all the crimes that Kwon is accused of in the US, then the entrepreneur could potentially be sent to the US for prosecution after serving his sentence in South Korea, which could amount to more than 40 years. one.
The prosecutor expects Kwon’s sentencing to be “the longest sentence ever handed down in South Korea.” Kwon’s cold wallet, believed to hold 10,000 Bitcoin (BTC), remains untraceable.
Sunhan confirmed that the authorities can see the funds moving out of the wallet in question. However, the location of the wallet and the withdrawal process remain a mystery.
“This is the largest financial or securities fraud case that has ever happened in South Korea,” Sunhan said.
JUST IN: #DoKwon has been released on bail once again after Montenegro court dismisses prosecution appeal pic.twitter.com/zOlpLqU17S
— cryptocurrency Rand (@crypto_rand) June 5, 2023
Kwon was detained by Montenegrin authorities on March 23 after he was caught trying to fly out of the country with forged documents. Shortly thereafter, the US and South Korean authorities demanded his extradition to their countries. According to South Korean prosecutor Dan Sunhan, some extradition requests could take up to nine months to be processed.
Related: South Korea passes bill to require officials to disclose bitcoin holdings
Meanwhile, South Korean authorities have begun reviewing transactions to acquire Binance in the country after the cryptocurrency exchange entered into a legal battle with the US Securities and Exchange Commission (SEC).
A local report states that South Korea’s financial watchdog, the Financial Services Committee (FSC), is considering Binance’s acquisition of local cryptocurrency trading platform Gopax.
In its review of the Gopax deal, FSC noted that Binance’s alleged violations of securities law and SEC requests to freeze Binance’s assets. The US makes it difficult to accept the acquisition request at this stage.