Disgraced crypto founder Do Kwon, sentenced to fifteen years in the U.S. for his role in the TerraUSD collapse, may face additional charges in South Korea, potentially adding decades to his prison sentence. Kwon, a South Korean national, could apply for extradition after serving half of his U.S. sentence. If extradited, he would face charges including violations of the Capital Markets Act, which could lead to more than thirty years in prison. Korean authorities estimate roughly two hundred thousand victims suffered losses totaling two hundred four million dollars. Kwon co-founded Terraform Labs, which issued the TerraUSD stablecoin and sister token LUNA. The system collapsed in May two thousand twenty-two, leading to a huge market contagion and massive investor losses. U.S. prosecutors later discovered that an investment firm contracted by Terraform Labs secretly purchased Terra to artificially prop up its price. Kwon was arrested in Montenegro in March two thousand twenty-three while attempting to travel with a forged passport. After a months-long extradition battle, he was ultimately sent to the U.S. last December. U.S. District Judge Paul Engelmayer sentenced Kwon to fifteen years in prison after convicting him on nine counts, including fraud and money laundering. The court also ordered the forfeiture of nineteen million dollars in illicit gains. During the U.S. legal process, the court received three hundred fifteen victim impact letters detailing suicide, bankruptcy, and health crises in the aftermath of the collapse. While some victims in South Korea feel that seeing Kwon punished in the U.S. is more meaningful, others believe a domestic outcome is crucial for accountability.

The Daily News Now! — Every city. Every story. AI-powered.

---

Hosted on Acast. See acast.com/privacy for more information.