Do Kwon is the CEO of Terraform Labs, the firm behind the cryptocurrencies Luna and UST. After their crash, he is facing a lot of pressure from the South Korean government. Kwon was also asked to attend a session in the parliament to discuss what happened. However, things might be different in the US as Do Kwon might not face Criminal Charges, say, Legal experts. They believe that civil charges are more likely to happen.
Why are criminal charges unlikely?
Criminal prosecution is a big deal, and it won’t be easy for any lawyer to prove what was going on in Do Kwon’s head. Randall Eliason, a professorial lecturer in law at the George Washington University Law School, who gave his view on the same, gave an interesting example. He said that this case would not be like a homicide where a witness can clarify who pulled the trigger.
There will be a lot of processes involved in a lawsuit against Do Kwon where lawyers will have to review docs, talk to a lot of people, and deal with their lawyers, alongside the court appearances. All this suggests that Do Kwon might not have to face criminal charges.
Randall also said that in criminal charges, everything needs to be very clear, and it’s required that they are able to differentiate the intent from trying to defraud from mistakes or misjudgment. So, civil charges are likely as the criteria are much easier to meet, and lawyers need to show that what they are trying to prove has a possibility of 50% or more.
Lawsuits from investors
There are also chances that Do Kwon will face a lot of lawsuits from investors who lost everything due to the crash. Even that will be civil cases. He is already facing a class-action lawsuit in South Korea which is a case filed by multiple investors. In the US, authorities could start digging in, and he might also face investigation by private entities who were harmed in the crash. However, a jurisdiction might play a huge role in this as he is not present in the US.
What are your thoughts as experts say Do Kwon might not face Criminal Charges in the US? And have you lost any money in the Luna UST crash? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Large investors dumped Luna on retailers: Report.