Do-hyung Kwon, CEO of Terraform Labs, goes to the District Court in Podgorica, the capital of Montenegro, on the 11th of last month (local time). random news
Circumstances were discovered when the CEO of Terraform Labs, Kwon Do-hyeong (32), who was in charge of the collapse of Terra Luna, was arrested in Montenegro and siphoned off large sums of money, the investigator said.
He also predicted that Kwon could spend the rest of his life in prison, being punished for various charges in Korea and the United States.
In an interview with Bloomberg on the 8th, Dan Seong-han, head of the Seoul Southern District Prosecutor’s Office joint investigation into financial and securities crimes, which led the investigation into the Terra and Luna incidents, said in an interview with Bloomberg on the 8th. after CEO Kwon was caught in March, he won about 37.8 billion in virtual currency wallets owned by Luna Foundation Guard (LFG) He said he has identified and is tracking the withdrawal worth 10 million won ($29 million).
Regarding the virtual money that disappeared from LFG, General Manager Dan said, “I assume that CEO Kwon or someone under his direction took it out and sent it to a place other than Signum Bank for his money ready.”
Dan also predicted that Kwon could spend the rest of his life in prison after being punished for various charges in Korea and the United States.
Director Dan said, “After being executed in Korea, you can serve a prison sentence in the United States.” “In Korea, you can be sentenced to more than 40 years in prison for financial fraud.” This means that there is a possibility that CEO Kwon will be sentenced to the longest sentence in the history of fraudulent crimes in the financial securities of Korea.
This is due to the ‘temporary extradition system’ where criminal proceedings in Korea are suspended and criminal recruits are temporarily transferred in order to proceed with criminal proceedings in other countries.
If South Korea takes over Representative Kwon from Montenegro first and completes the trial and conviction, he will be temporarily extradited to the United States before serving the sentence to complete the investigation and the trial without punishment in Korea, and then being sentenced again in Korea and the United States in turn It’s a scenario that makes you live.
CEO Kwon, who left Korea in April last year, was arrested and detained in Montenegro in March, 11 months after he fled, on charges of using a fake passport. The local court granted him bail, but he repeatedly objected to the prosecution, and his release has not yet been made.
Do-hyung Kwon goes to court in Montenegro. random news
The Southern District Prosecutor’s Office, which had been investigating the officers of the Terra Luna incident on charges of violating the Capital Market Act, requested extradition to Montenegro through the Ministry of Justice at the time.
However, since the United States also demanded the transfer of recruits at the same time, the authorities of both countries were in a position where they were competing to secure Kwon’s recruits.
Previously, in February, New York prosecutors indicted CEO Kwon on a total of eight charges, including securities fraud, financial fraud using internet banking, and market manipulation.
According to Bloomberg, Director Dan said, “Depending on how long the suspect was detained, I know the extradition process can take up to nine months. “We have to get them to Korea first,” he stressed. .
Meanwhile, the Financial Crimes Unit has been chasing Kwon after an arrest warrant was issued for breaching the Capital Market Act in September last year.
Prosecutors believe Kwon continued to issue coins without notifying investors even though he knew about the potential collapse of Terra and Luna. UST, a stablecoin (virtual currency designed to be linked to a fiat currency such as the dollar), was designed to maintain a fixed exchange rate of 1:1 with the dollar by exchanging with sister coin Luna.
However, as the virtual currency market froze, Terra fell below $1, and Terraform Labs tried to boost its value by mass-printing Luna and buying Terra. This eventually led to a collapse in value due to an increase in the amount of currency and mass dumping. As a result, Terraform Labs collapsed, leading to a series of bankruptcies such as virtual currency hedge fund Three Arrows Capital (3AC), money brokerage/lending company Voyager Digital, and giant virtual currency exchange FTX.
