Do Kwon Faces Potential Second Trial in South Korea After U.S. Sentencing

According to ChainCatcher, Terraform Labs co-founder Do Kwon, who was sentenced to 15 years in prison by a U.S. federal court in Manhattan for orchestrating the $40 billion TerraUSD collapse, may face a second trial in South Korea. Reports indicate that South Korean prosecutors are seeking a sentence exceeding 30 years for Kwon, citing violations of capital market laws. The 34-year-old South Korean national may apply for transfer to South Korea after serving half of his sentence, where approximately 200,000 Korean investors suffered losses amounting to around 300 billion won ($204 million). U.S. District Judge Paul Engelmayer, during last week's sentencing, remarked on the severity of the fraud, stating, "In the history of federal prosecutions, few fraud cases have caused such significant damage." Do Kwon has admitted to intentionally participating in a scheme to defraud Terraform Labs cryptocurrency buyers between 2018 and 2022, which led to the collapse of the TerraUSD stablecoin and Luna token in May 2022, triggering a ripple effect in the cryptocurrency market.