Do Kwon Unlikely to Face Criminal Charges in the US, Legal Experts Say – Featured Bitcoin News

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Terraform Labs CEO Do Kwon should not face criminal charges in the United States for the collapse of the cryptocurrency terra (LUNA) and stablecoin terrausd (UST), according to legal experts. They explained that civil lawsuits are more likely, including lawsuits from cryptocurrency investors.

Do Kwon is unlikely to face criminal charges

The recent collapse of cryptocurrency terra (LUNA) and stablecoin algorithm terrausd (UST) has raised questions about whether their creator, Do Kwon, can be held responsible.

Randall Eliason, a law lecturer at George Washington University School of Law who spent 12 years as an assistant U.S. attorney for the District of Columbia, said Kwon is unlikely to face prosecution. criminally, CNBC reported Thursday.

Emphasizing that prosecutors must prove criminal acts beyond a reasonable doubt, he was quoted as saying, “It’s not like a homicide where you bring in witnesses to testify about who pulled the trigger.”

The legal expert described:

We’re trying to prove what was going on in someone’s head. This is often a very laborious process.

He explained that the process “involves reviewing a lot of documents, talking to a lot of people and dealing with all of their attorneys throughout this process and scheduling grand jury time and court appearances. “.

Renato Mariotti, former federal attorney and general counsel, stressed that prosecutors must prove the defendant’s state of mind beyond a reasonable doubt, stating that they “often rely on emails, text messages, tweets and other statements”.

Eliason cited the example of Theranos and former CEO Elizabeth Holmes. In this case, they told investors that they were using their own machines to analyze blood samples when in reality they were using other companies’ machines to perform tests. Eliason said:

Things like this suggest intent enough to deceive and defraud than mere errors of judgement, mistakes, or other lesser forms of misconduct.

Unlike criminal cases, the burden of proof for civil cases is much lower and generally based on a preponderance of the evidence. According to the preponderance standard, the burden of proof is satisfied when the party bearing the burden convinces the investigator that there is more than a 50% chance that the allegation is true.

Eliason detailed:

Often, in such cases, the appropriate remedies end up being civil, regulatory and administrative – and in fact non-criminal.

Civil cases could include lawsuits from crypto investors. In South Korea, a class action lawsuit has already been filed against Kwon, his company Terraform Labs and the company’s co-founder.

In the United States, Kwon is already in trouble with the United States Securities and Exchange Commission (SEC). He dodged a few subpoenas earlier this year and filed a lawsuit against the regulator.

“There are many other potential agencies or governments that could take a look at this conduct, in addition to individuals who have been harmed,” the legal expert noted, adding:

There are going to be jurisdictional issues…since he is not in the United States, the South Korean authorities might have something to say about possible sanctions.

Do you think Do Kwon should face criminal charges? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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