Terra founder Do Kwon may face up to 40 years jail punishment
South Korean prospector hinted that Do Kwon may face a punishment of minimum 40 years behind bars just like Jae-Hyun, where fraud was near to $1 billion scam.
Do Kwon is a co-founder of Terraform Labs. Terraform Labs developed the Terra blockchain with two native tokens Luna & TerraUSD stablecoin but both of these two coins collapsed badly last year. Terra’s market cap was near $40 billion, which collapsed within 24 hours in May of last year. Kwon was on the run for a long time but recently he was detained by the local police authorities in Siberia with fake Id documents.
On 5 May 2023, Wall Street Journal (WSJ) reported that South Korean prosecutor Dan Sung-han, overseeing the Terra crypto fraud case, said that Terra co-founder Kwon’s extradition to South Korea will be the best approach to give justice to the Terra crypto tokens investors.
According to this Korean prosecutor, the laws under the Jurisdiction of South Korea are very strict and here Kwon will face a very big punishment for what he did with his Terra empire.
Sung-Han noted that it will be much better to handle the case in South Korea because the origin of the Terra project is South Korea and here almost all evidence is available, which will help to investigate the case.
Prosecutor also pointed attention toward a recent case in which the Korean Supreme Court upheld the 40-year prison sentence for Jae-hyun over a link with a $1.08 billion Ponzi investment scheme.
In short, 40 years of jail punishment will be the minimum action against Kwon.
USTC re-peg plan
After the collapse of TerraUSD stablecoin, Terraform Labs renamed this coin into TerraUSD classic (USTC). Recently a Terra classic proponent suggested a plan to bring USTC again back to its $1 pegged value.
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