The founder and CEO of Terraform Labs, Do Kwon, could receive a sentence of up to 40 years in prison, according to recent information from the The Wall Street Journal.
Do Kwon has been jailed for almost two months, when he was arrested at Podgorica airport with forged documents on 23 March.
According to the publication, the South Korean prosecutor overseeing the case, Dan Sung-han, wants the founder and CEO of Terra to be extradited to South Korea, as this measure would be the best alternative to achieve justice for the investors harmed after the $40 billion implosion of TerraUSD.
If convicted, Kwon could face an unprecedented sentence for financial crime in South Korea. According to the report, the sentence could even be longer than the 40-year sentence of Seoul hedge fund manager Kim Jae-hyun.
It is worth remembering that, recently, the South Korean prosecutor identified 414,5 billion won (US$ 314,2 million) in illicit assets that are associated with the founder and CEO of Terraform Labs, Do Kwon, and their associates. Of these, the prosecution has linked about 91,4 billion won ($69 million) to Kwon.
A report recently published by local media outlet KBS highlighted that Do Kwon converted most of the illicit funds into Bitcoin (BTC). The action would have been carried out using cryptocurrency exchanges abroad instead of investing in physical assets.
