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