How Will the Legal Case Against Do Kwon Play Out in South Korea?

Zack Guzman, journalist and Coinage host, and Jongbaek Park, partner specializing in blockchain and crypto assets at Bae, Kim & Lee, discuss how the case in South Korea against Do Kwon and TerraForm Labs will likely go, whether Do Kwon is on the run, and what his sentence could be. 

Show highlights:

• Jongbaek’s and Zack’s disclosures regarding Terra
• how big the Terra phenomenon was in South Korea and how Do Kwon was perceived in the country
• whether Do Kwon posed any conditions for his interview with Zack
• what Do Kwon is being charged with
• the colliding opinions on which tokens are considered securities
• whether the collapse of Terra had any negative impact on the South Korean President’s image
• whether Do Kwon feels like a charge for violating the capital markets law is unfair
• whether Do Kwon is “on the run,” despite his denials
• how the potential revocation of Kwon’s passport could make him go back to Korea
• whether Terra was a failure or a fraud, and how prosecutors are looking into it
• whether Terra was centralized 
• the chance of prosecutors going after other people from Terraform Labs and the probability of the entity’s assets being frozen
• how much jail time Kwon could be facing and whether he is prepared to go to prison

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Guests:

Jongbaek

Zack: Twitter

Episode Links

Previous Coverage of Unchained on Do Kwon and Terra:

• Do Kwon Is Backing UST With Bitcoin – And Here’s What Else He Is Building
• The Legal and Regulatory Fallout From Terra’s Collapse: Who Will Pay?
• The Chopping Block: Does the New Terra Have Any Chance?
• Hester Peirce’s Former Counsel on Terra 2.0, XRP and a Bitcoin Spot ETF
• Why Terra Collapsed and Whether an Algo Stablecoin Can Ever Succeed

SEC Actions Against Terra

• SEC Investigating UST Stablecoin Blowup in Fresh Threat to Terra
• Terraform Labs Loses US Appeal over SEC Subpoena

Allegations against Do Kwon

• Seoul Police Probe Allegation of Embezzlement by Terraform Staff
• South Korea Launches Investigation into Company Behind Luna Crypto Crash
• Class action against Do Kwon
• Was LUNA a Security?
• Korean prosecutors are looking into Terra

Do Kwon 

• Red Notice
• “Not on the run”
• Kwon’s Passport

Stablecoin Regulation

• Stablecoin Draft Bill
• Yellen cites UST stablecoin risk after it loses its dollar peg

Haseeb Qureshi’s summary of the Terra collapse:

Zack’s Interview with Kwon