Legal Experts Say Do Kwon Will Not Face Criminal Charges In The US – Featured Bitcoin News

According to legal experts, Terraform Labs CEO Do Kwon is unlikely to face criminal charges for the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST) in the US. They explained that civil charges are more likely, including lawsuits filed by cryptocurrency investors.

Kwon Likely to Face Criminal Charges

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

Randall Eliason, a law professor who spent 12 years at the George Washington University Law School as a US assistant attorney for the District of Columbia, explained that Kwon is unlikely to be prosecuted, CNBC reported on Thursday.

Emphasizing that prosecutors must prove criminal crimes beyond a reasonable doubt, he said, “It is not like a murder where you bring a witness to testify who pulled the trigger.”

The legal expert explained:

We’re trying to prove what’s on someone’s mind. This is usually a very laborious process.

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

Renato Mariotti, a former federal prosecutor and litigation attorney, stressed that prosecutors must prove the defendant’s mood beyond a reasonable doubt, noting that they “frequently rely on emails, texts, tweets, and other statements.”

Eliason gave the example of Theranos and former CEO Elizabeth Holmes. In this case, they told investors that they were using their own machine to take blood samples, while in reality they were using other companies’ machines to perform the tests. Eliason expressed the following views:

Things like this are highly suggestive of genuine deception and fraudulent intent, only against misjudgments, errors, or other lesser forms of abuse.

Unlike criminal cases, the burden of proof in civil cases is much lower and typically relies on the preponderance of evidence. According to the dominance standard, the burden of proof is met when the party with the burden convinces the fact-finder that the claim has a greater than 50% chance of being true.

Eliason detailed:

Often, in such cases, the appropriate remedies are legal, regulatory and administrative, and are not actually criminal.

Litigation may include lawsuits from crypto investors. In South Korea, a class action lawsuit was filed against Kwon, his company Terraform Labs, and the company’s co-founder.

In the US, Kwon is already in trouble with the US Securities and Exchange Commission (SEC). Earlier this year, it survived several subpoenas and filed a lawsuit against the regulator.

The legal expert added:

There will be problems with the judiciary‚ĶSouth Korean officials may have something to say about possible sanctions, since it’s not in the US.

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

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been a herald ever since. His areas of interest are Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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