Do Kwon Faces Potential Prison Time In US And South Korea, Prosecutor Warns

Terraform Labs co-founder Do Kwon has fallen into the tight fist of the law as a senior prosecutor says Kwon may face double jail terms, first in his native South Korea and then in the US.

The senior South Korean prosecutor, Dan Sunghan, stated that Do Kwon would face multiple sentences regarding his involvement in the collapse of the Terra ecosystem. Sunghan, who is leading the investigation in South Korea, made the statement while interacting with Bloomberg.

Dan Sunghan is also the Director of the financial crime investigation bureau at the Seoul Southern District Prosecution Service.LUNA

Kwon To Face Multiple Charges In Different Countries

Montenegro authorities arrested Do Kwon on March 2023 while he was trying to escape the country with fake documents. However, both South Korea and the US are requesting his extradition.

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In the speech, Sunghan mentioned that South Korea had handled most of the foundational investigation on the implosion of the Terra ecosystem.

He revealed the South Korean authorities have access to more evidence on the matter than those in the United States. Further, Sunghan highlighted that the South Korean Authorities have already identified some of Kwon’s co-conspirators. 

So, he believes that carrying out the investigation and trial of the former crypto titan in South Korea is the most efficient approach to getting justice.

Sunghan thinks that the trial and jail sentence for Kwon could be based on different charges and in two separate countries.

Do Kwon Faces Potential Prison Time in US and South Korea, Prosecutor Warns
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He explained that the US prosecution would step in if the South Korean trial didn’t cover the crimes the US accused Kwon of committing. According to Sunghan, Kwon would first face fraud charges in South Korea and later be extradited to the US for another trial. 

Also, his jail terms would follow accordingly, first in South Korea and subsequently in the US, with the former expected to be over 40 years. Additionally, Sunghan opined that Do Kwon’s extradition should first be to South Korea. However, he noted that the process could take at least nine months.

Mystery In Location And Funds Transfer From Kwon’s Cold Wallet

Sunghan also noted the recent funds transfer from Kwon’s cold wallet containing 10,000 BTC. The senior prosecutor stated that the wallet’s location and means of transfer from it are still unknown. However, the South Korean authorities have seen and are probing the withdrawals.

Meanwhile, Do Kwon is under house arrest in Montenegro with the chief financial officer of Terraform Labs, Han Chang-Joon. 

The pair are under the watchful eyes of the police following their bail grant by a Montenegro court on June 5. Kwon and Chang-Joon are legally confined within Chang-Joon’s residence in Montenegro pending their extradition ruling.

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