Do Kwon could serve prison in both US and South Korea, prosecutor says

Co-founder and CEO of Terraform Labs do kwon he may be subject to multiple sentences in the United States and South Korea, according to a senior South Korean prosecutor leading the investigation.

Kwon is understood to be currently serving bail at his home in Montenegro, after his bail proposal was granted by a court in Montenegro on June 5. Both Kwon and Terraform Labs CFO Han Chang-Joon are legally required to reside in Chang-Joon's legal residence in Montenegro while a decision on extradition is made.

Speech Speaking to Bloomberg, Dan Sunghan revealed that Kwon's extradition to South Korea made the most sense "when it comes to delivering justice or recovering damages for the victims."

South Korea's top prosecutor Dan Sunghan discusses the possibility of Kwon facing multiple sentences in the US and South Korea. Source: Bloomberg

According to Sunghan, most of the basic research on the collapse of the Terra ecosystem was done in South Korea. In addition, he stated that local authorities have access to more tests compared to their American counterparts.

"The most efficient way to get justice is for the investigation and trial to take place in South Korea."

Sunghan also emphasized the fact that the South Korean authorities have already indicted several of Kwon's accomplices.

However, when asked about the possibility of Kwon facing trial in both the US and South Korea, Sunghan believes that "such a scenario is an option." A convicted person is subject to multiple cross-border sentences when he has yet to be prosecuted for some of the crimes in one of the jurisdictions, he explained.

Therefore, Sunghan said that if the South Korean authorities do not account for all the crimes Kwon is accused of within the US, then the businessman could be sent to the US to be prosecuted after serving his sentence in South Korea, which could be more than 40 years. only.

The prosecutor expects Kwon's sentence to be "the longest sentence ever handed down in South Korea." Kwon's cold wallet, supposedly containing 10,000 Bitcoin (BTC), remains untraceable.

Sunghan confirmed that the authorities can see how funds are moved from the wallet in question. However, the location of the wallet and the process used to withdraw the funds remain a mystery.

“This is the largest financial fraud or securities fraud case that has ever occurred in South Korea,” Sunghan said.

Kwon was detained by the Montenegrin authorities on March 23 after being caught trying to fly out of the country using false documents. Soon after, both the US and South Korea authorities requested his extradition to their respective countries. According to South Korean prosecutor Dan Sunghan, some extradition requests can take up to nine months to process.

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A local report suggests that South Korea's financial watchdog, the Financial Services Committee (FSC), is reviewing Binance's acquisition of local crypto trading platform Gopax.

In its review of the Gopax deal, the FSC noted that Binance's alleged securities law violations and SEC requests to freeze Binance.US assets make it difficult to accept the takeover request at this time.