Terraform Labs CEO Do Kwon faces the possibility of multiple sentences in the United States and South Korea, as revealed by a senior South Korean prosecutor leading the investigation.
Currently under house arrest on a bail in Montenegro, Kwon and Terraform Labs’ CFO Han Chang-Joon are required to stay at Chang-Joon’s residence in Montenegro while awaiting an extradition decision.
In Bloomberg’s News, Dan Sunghan, the South Korean Prosecutor, stated that extraditing Kwon to South Korea would be more beneficial in terms of justice and recovering damages for victims.
He emphasized that South Korean authorities have already indicted several of Kwon’s co-conspirators and possess more evidence compared to their American counterparts.
Sunghan also acknowledged the possibility of Kwon facing trials in both the U.S. and South Korea, explaining that if South Korean authorities fail to account for all the crimes Kwon is charged with within the U.S., he could potentially be sent to the U.S. for prosecution after serving his sentence in South Korea, which alone could exceed 40 years.
Anticipating the longest sentence ever handed down in South Korea, Sunghan mentioned that Kwon’s cold wallet, containing 10,000 Bitcoin, remains untraceable.
While authorities can observe funds being moved from the wallet, their location, and the withdrawal process remain a mystery.
The prosecutor referred to this case as the largest financial fraud in South Korean history. Kwon’s arrest occurred in Montenegro on March 23 when he attempted to leave the country using counterfeit documents.
Both the U.S. and South Korean authorities subsequently requested his extradition, which could take up to nine months to process, according to Sunghan.
In a separate development, South Korean authorities have initiated a review of Binance’s acquisition deals in the country following the crypto exchange’s legal battle with the U.S. Securities and Exchange Commission.
The Financial Service Committee of South Korea is scrutinizing Binance’s acquisition of local crypto trading platform Gopax.
The committee cited alleged securities law violations by Binance and the SEC’s request to freeze Binance.US assets as factors complicating the acceptance of the acquisition request at this stage.
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