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US Legal Troubles Mount for Terra Founder Do Kwon Amidst Sentencing Drama

Do Kwon, the founder of the Terra (LUNA) ecosystem, is facing a turbulent legal landscape after being sentenced to 15 years in prison in the United States.

In addition to his U.S. sentence, South Korean prosecutors are preparing to initiate a separate criminal trial against Kwon that could potentially extend his incarceration by over 30 years.

The domestic charges stem from the catastrophic collapse of TerraUSD and LUNA in May 2022, which resulted in approximately $204 million in losses to 200,000 South Korean investors.

Kwon’s schemes have drawn scrutiny not just from prosecutors, but also from victims who highlight the extensive human toll of financial malfeasance.

His arrest in March 2023 in Montenegro for attempting to flee with a fake passport marked the beginning of his extradition saga to the U.S., culminating in his recent sentencing.

While Kwon is currently imprisoned in the United States, he may apply for extradition to South Korea after serving half of his sentence, allowing him to face additional charges at home.

The fallout from the Terra collapse led to a total market loss of roughly $40 billion, triggering a wave of bankruptcies in the cryptocurrency sector.

Victims of the Terra debacle have submitted compelling accounts to the court, detailing the emotional and financial devastation they have endured.

As discussions surrounding Kwon’s responsibilities continue, many victims advocate for a trial in South Korea that would hold him accountable under local laws.

The ongoing legal challenges underscore the complex interplay between U.S. and South Korean justice systems in addressing financial crime in the rapidly evolving crypto landscape.