While the South Korean government has intensified its investigation into Do Kwon and the Terra crash, a closer examination of the legal issues reveals some surprising insights.
Du Kwon and Terraform Labs are the focus of the lawsuits, and charges of tax evasion have been issued against them.
Kwon under legal scrutiny
The country’s government also intends to set up a digital asset watchdog in the near future. The Digital Asset Committee will oversee the market and develop listing, transparency and strong regulatory norms. It will also hold talks with a team made up of the top five cryptocurrency exchanges in South Korea.
But, the stakes are not as high for Do Kwon as others who lost money in Terra Investing. According to a study by CNBC, the former federal prosecutor and regulator. Randall Eliasson believes he will face fines and penalties because of the situation. In the worst case scenario, Kwon expects to spend time in prison.
Billions fined for Terra?
In the Do Kwon case, fines may be imposed depending on the size of the damages, where the estimate would be approximately $60 billion. Terra’s founder could be killed by a court order and disorder.
Furthermore, Binance CEO CZ directed his investigative team to investigate the allegations leveled against Kwon by Terra Insider Fatman. The CZ algorithm has been a vocal opponent of Kwon’s proposal to revive stablecoins and UST and Luna tokens.
It is also worth noting that Binance proceeded with caution when listing the new LUNA currency. The coin listing got approval in the exchange’s innovation zone, which is for high-risk tokens.
In the midst of all the chaos, FatMan recently revealed that Kwon may be creating a new decentralized stablecoin on Terra 2.0 in the near future.