The founder of Terraform, Do Kwon, has found himself embroiled in a legal controversy that may result in serious consequences. On March 23, 2023, Kwon was arrested in Podgorica, Montenegro, and charged with orchestrating a cryptocurrency fraud in both the United States and South Korea. Recent developments reveal that the South Korean authorities have also frozen Kwon’s assets, including his Seoul residence, real estate, imported cars, securities deposited with Mirae Asset Securities, deposits with Woori Bank, and cryptocurrency assets in various exchanges.

Kwon’s case is being treated with seriousness by the authorities, and the allegations leveled against him are grave. According to reports, Kwon and Terraform serviced unregistered financial securities, and if convicted, Kwon could face over 40 years in prison. This would be the heaviest sentence given to a financial crime in South Korea’s history.

THE IMPLICATIONS OF THE COURT’S DECISION

The court’s decision means that Kwon cannot move or sell his assets and properties equivalent to the amount of his alleged illegal profits, which will be confiscated following a guilty verdict. This move by the South Korean authorities indicates that they are taking a strong stance against white-collar crimes in the country.

CHARGES AGAINST TERRA FOUNDER

Kwon has denied all the allegations leveled against him, stating that mistakes were made in the Terra-Luna crypto project managed by his Terraform Labs, but they were not designed to deceive investors. However, recent developments have shown that there were incidents that prove Kwon knew beforehand about the collapse of the network.

Kwon’s legal troubles are not over yet, as he faces travel document forgery charges that will be heard in Montenegro tomorrow. The outcome of this hearing will determine whether Kwon will be able to travel and defend himself against the charges he faces in other countries.

CONCLUSION

The legal troubles of Do Kwon, the founder of Terraform, serve as a cautionary tale to those involved in the cryptocurrency industry. The case shows that authorities are taking a serious stance against financial crimes and that they will do everything in their power to bring offenders to justice. The outcome of Kwon’s legal battles will have significant implications for the cryptocurrency industry and may determine the future direction of regulation in the sector.