The chief prosecutor in South Korea, leading the case against Terraform Labs CEO Do Kwon, indicated that he might face multiple terms in his home country and the United States.
Kwon was recently granted a bail petition by a judge in Montenegro, allowing him to remain free under house arrest while awaiting trial. As the extradition decision is pending, Kwon and Terraform Labs’ CFO Han Chang-Joon is legally obligated to reside at Chang-Joon’s designated residence in Montenegro.
Dan Sunghan, speaking to Bloomberg, emphasized that extraditing Kwon to South Korea would be more favorable “in terms of achieving justice and recovering damages for the victims.”
According to Sunghan, most of the initial investigation into the collapse of the Terra ecosystem was conducted in South Korea. He noted that local law enforcement, unlike their American counterparts, had easier access to more evidence.
Sunghan revealed that South Korean authorities had already indicted several of Kwon’s accomplices.
Regarding the possibility of Kwon being tried in both the United States and South Korea, Sunghan stated that such a scenario is an option. He explained how an individual convicted of crimes in multiple countries could face multiple foreign sentences if not prosecuted for all offenses.
As a result, Sunghan added that the businessman might be extradited to the US for trial after serving his sentence in South Korea. This alone could extend beyond 40 years if South Korean authorities do not account for all charges against Kwon in the US.
According to Sunghan, this case represents South Korean history’s most notable instance of financial fraud or financial securities fraud.
Binance under scrutiny from South Korean watchdogs
In the meantime, South Korean authorities have commenced investigating Binance’s trading activities in the country following the exchange’s legal disputes with the SEC.
The Financial Service Committee (FSC), South Korea’s financial regulator, is reportedly examining Binance’s acquisition of Gopax, a local cryptocurrency trading platform.
The FSC raised concerns about Binance’s alleged violations of securities laws and the SEC’s attempts to freeze Binance’s assets as part of their assessment of the Gopax transaction. With a significant number of US assets involved, the approval of the acquisition request is now in doubt.