Terra founder’s choice: 100 years in prison in USA or 40 years in South Korea

0

Last Updated on 6 November 2023 by CryptoTips.eu

Before we move on to bigger lawsuits in the United States in the fall of this year (the one against FTX founder Sam Bankman-Fried and of course also the one against former president Donald Trump), there is one more lawsuit for the crypto world to look forward to.

Do Kwon, the former CEO and founder of the now bankrupt Terra (LUNA) project. The man was finally found (and arrested) on March 23, 2023 in Montenegro where he is now awaiting extradition. Several countries want him of which South Korea and the United States are the most important.

The whole story brings to mind a rather funny anecdote which took place in November of last year. After the collapse of Terra, the man on the run, Do Kwon, appeared in quite a few podcasts. In one of those he was invited together with ‘pharma bro’ Martin Shkreli, who famously also spent some time in jail already. During the introductions, Martin tells him: “Jail is not that bad.”

Advertentie.

Choices, choices

Chinese crypto journalist Colin Wu explained the choice that Do Kown faces best, saying:

It should be noted that the criminal penalties in the United States will be much harsher than in South Korea. In reality, there is a significant disparity in the maximum jail sentence.

Kwon faces eight felony counts, including investor fraud, securities fraud, mail fraud, and commodity fraud… When the punishments for the numerous offenses that Kwon must face in the United States are put together, Kwon’s maximum penalty in the United States can be more than 100 years, whereas the maximum sentence in Korea is only about 40 years.

This is because several lawsuits are pending in the US issued by the Securities and Exchange Commission (SEC). Under the US system of cumulative sentences, Kwon could face up to 100 years in prison if extradited over there.

South Korea has no specific laws regarding crypto or investments and the South Korean legal system provides for a maximum sentence of 40 years in prison for economic crimes.

Do Kwon’s lawyer in Montenegro is of course trying to secure an extradition to South Korea for his client.

Preference

Singapore has also asked for his extradition, but it is unlikely that the authorities in Montenegro would allow this instead of a transfer to the US or South Korea for the man. Since Montenegro probably prefers to get on good standing with the Americans than with the South Koreans, it looks rather bad for the man.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts