Terra Labs Co-founder Do Kwon Faces Imminent Imprisonment in South Korea and US, Warns Prosecutor
With legal proceedings underway in his home country of South Korea and looming charges in the United States, the disgraced former crypto titan, Do Kwon may spend most of his life behind bars, first in his native South Korea and then in the US.
By Anna B Kiwanuka
Do Kwon, the co-founder and CEO of Terraform Labs, may be subjected to multiple sentences in both the United States and South Korea, as confirmed by a senior South Korean prosecutor leading the investigation.
Currently, Kwon is under house arrest in Montenegro, having been granted bail by a Montenegro court on June 5. Kwon, along with Terraform Labs’ chief financial officer Han Chang-Joon, are legally required to reside at Chang-Joon’s legal residence in Montenegro while awaiting a decision on extradition.
Speaking to Bloomberg, prosecutor Dan Sunghan explained that extraditing Kwon to South Korea would be more appropriate to seek justice and recover damages for the victims. Sunghan emphasized that the initial investigation into the collapse of the Terra ecosystem took place in South Korea, and local authorities possess more evident compared to their American counterparts.
“The most effective way to achieve justice is to conduct the investigation and trial in South Korea,” Sunghan stated.
The prosecutor also highlighted that South Korean authorities have indicted several individuals involved in Kwon’s alleged wrongdoing.
However, when questioned about the possibility of Kwon facing trials in both the US and South Korea, Sunghan acknowledged that such a scenario is an option. He explained that if South Korean authorities do not address all the charges Kwon is accused of within the US, Kwon could potentially be extradited to the US for prosecution after serving his sentence in South Korea. The combined sentences from both countries could potentially exceed 40 years.
Sunghan expects Kwon’s sentence to be the longest ever handed down in South Korea.
Notably, Kwon’s cold wallet, which allegedly holds 10,000 Bitcoin, remains untraceable. Authorities have observed the movement of funds from the wallet, but its location and the method used to withdraw the funds remain unknown.
“This is the largest financial fraud or financial securities fraud case that has ever occurred in South Korea,” remarked Sunghan.
Kwon was apprehended by Montenegro authorities on March 23 when he attempted to leave the country using counterfeit documents. Subsequently, both US and South Korean authorities requested his extradition. According to prosecutor Dan Sunghan, the extradition process can take up to nine months to complete.