Terraform Labs co-founder and CEO, Do Kwon, is currently facing the possibility of multiple sentences in both the United States and South Korea, as revealed by a senior South Korean prosecutor leading the investigation. Kwon, who is presently under house bail in Montenegro, awaits a decision on his extradition. The prosecutor strongly believes that bringing Kwon to South Korea would serve justice and be more beneficial for the victims involved.
South Korean authorities have taken the lead in the investigation into the collapse of the Terra ecosystem, and as a result, they have access to a larger pool of evidence compared to their American counterparts. Given this difference in investigation progress and available evidence, the possibility of Kwon facing trials in both the US and South Korea is being considered as an option, particularly if he is not prosecuted for all crimes in one jurisdiction.
The prosecutor foresees Kwon’s sentence to be the longest ever handed down in South Korea. This reflects the severity of the charges against him and the impact of the collapse of digital tokens associated with Terraform Labs. Notably, Kwon’s cold wallet, which is believed to contain 10,000 Bitcoin, remains untraceable, adding to the complexity of the case.
Legal Battle and Extradition Process
Kwon was granted release on bail after being detained by Montenegro authorities for attempting to leave the country using fraudulent documents. Currently, both the US and South Korea have submitted extradition requests, which are currently being processed. It is expected that the decision on Kwon’s extradition will take some time.