Awaiting Justice
Dan Sung-han, the prosecutor in command of the case, thinks that South Korea ought to have precedence to ship the most effective justice for buyers whose cash was worn out because of the collapse of TerraUSD foreign money.
Beforehand, some authorized consultants instructed Kwon’s extradition to his homeland, citing that the crypto foreign money mogul is a Korean citizen and was first charged there.
The US can be vying for Kwon’s extradition. Nonetheless, buyers doubt the potential for justice properly served after the case of Sam Bankman-Fried. FTX’s former CEO is at the moment out on bail and residing together with his household after extradition to the US. The choice stirred a number of criticism.
Bankman-Fried stands accused of a number of offenses, together with conspiracy to defraud clients and lenders, securities fraud, merchandise fraud, cash laundering, and conspiracy to violate monetary legal guidelines.
If discovered responsible, Mr. Bankman-Fried might doubtlessly resist 115 years of imprisonment.
Do Kwon faces a 40-year sentence in Korea if convicted, in response to The Wall Avenue Journal. Kwon might face an unprecedented sentence for a monetary crime in South Korea, with the potential for exceeding the 40-year time period handed to Kim Jae-hyun, a hedge fund supervisor in Seoul.
In one of many largest fund fraud schemes within the nation, involving investments exceeding $1.08 billion, Jae-hyun acquired a 40-year jail sentence, which was upheld by the Korean Supreme Court docket in July of final 12 months.
Kwon’s detention in Montenegro was confirmed by South Korean authorities in March, and shortly thereafter, footage emerged on social media exhibiting Kwon and Terraform CFO Han Chang-joon being led out of a Montenegrin court docket in handcuffs, which was broadly considered as incriminating.
Tightening Coverage
The depegging of UST from its unique worth triggered a catastrophic decline within the cryptocurrency market, ensuing within the destruction of over $60 billion in worth.
In keeping with native information reviews, the variety of Korean victims who suffered losses on this market crash has exceeded 200,000. Given the magnitude of this occasion, it’s too vital to be ignored, and its influence is felt throughout generations in South Korea.
Terraform Labs, the guardian firm of Terra, relies in Singapore, somewhat than South Korea. Nonetheless, the Terra undertaking as soon as loved a excessive diploma of esteem within the hometown of its founder, Do Kwon.
Mr. Kwon was as soon as a outstanding determine who garnered world consideration and was appeared as much as as a task mannequin for different cryptocurrency firm founders in Korea.
The Korean authorities beforehand displayed assist for cryptocurrencies. Nonetheless, as cryptocurrency rules within the nation step by step grew extra stringent, LUNA’s collapse additional contributed to this development. In keeping with CoinDesk, political elements additionally performed a task within the collapse of LUNA.
Throughout the 2022 presidential election, the entire candidates included a crypto-friendly coverage of their respective campaigns. Yoon Suk-Yeol, the present President of South Korea, pledged to restrict taxes on cryptocurrencies and allow ICOs. President Yoon took workplace in Might of that 12 months, the identical month by which Terra suffered a collapse.
As a consequence of LUNA’s collapse, buyers incurring losses, and firms going bankrupt, the Korean authorities has been compelled to undertake stricter insurance policies towards cryptocurrencies, thereby limiting its capability to supply assist.
Terra’s buyers await the graduation of proceedings that may allow punishment on Do Kwon.
The quantity of compensation that these clients will obtain stays unsure, though it’s sure that the worth of the shopper belongings which were misplaced quantities to a number of billion {dollars}.
