Do Kwon, the CEO of Terraform Labs has been the center of attention in the crypto market over the last few weeks. This is due to the mishap that occurred involving the native token of the platform, LUNA, and stablecoin, UST. In a new update, legal experts in the United States have said that the Terra CEO will likely evade sanctions in the country. However, they noted that the only thing he should be worried about was lawsuits involving a massive amount of LUNA holders.
Investors call for an investigation into Do Kwon
Since the issue occurred, there have been calls for prosecution by traders inside and outside the home country of Do Kwon, South Korea. This is because most investors believe that the CEO might be involved in the issues. Although investigations are still ongoing, it has left little to satisfy the urge of investors that suffered losses as a result of the issues.
According to a CNBC report, a top legal expert in the country who has served in the public office mentioned that the Terra CEO will escape the long arms of the law in the United States. In his statement, he mentioned that prosecutors will need to prove that he was involved in the process beyond any doubt. The lawyer mentioned that the case is not like a criminal case where testifiers provide incriminating evidence against Do Kwon.
Terra could face more civil lawsuits
The legal executive said that the law cannot prove the motive that is conceived in people’s minds because the process is always tedious. He also talked about looking into a mountain of documents to find evidence, talking to investors and analysts among other entities involved in the case, and moving from different court venues and legal tussles. A prosecutor also mentioned that the prosecutors need to look into the mind frame of the defendant as they will only be able to see text messages, documents among other physical documents.
The former United States public expert made mentioned a case involving the sampling of blood samples. In the case, the defendant mentioned that they were using their machines to run blood samples while they were using an external machine for the process. The civil cases that Do Kwon could face would involve class action lawsuits from aggrieved investors. Aggrieved investors in South Korea have filed several lawsuits against Do Kwon and his company, with the majority urging the government to sanction and investigate him. However, Terra has continued to carry out an airdrop of the new LUNA tokens to compensate holders of the old token.
