According to legal experts, Do Kwon, CEO of Terraform Labs, the collapse of the cryptocurrency terra (LUNA) and stablecoin terrausd (UST), in the United States, criminal He said it is unlikely that they will be prosecuted. They are more likely to be civilly liable, including lawsuits by cryptocurrency investors, he explained.
Do Kwon is unlikely to face criminal charges
The recent collapse of cryptocurrency Terra (LUNA) and Algorithm Stable Cointegrated (UST) has raised questions about whether their creator, Do Kwon, can be held liable.
Randall Eliason, a faculty lecturer at George Washington University Law School and assistant U.S. attorney for the District of Columbia for 12 years, explained that Kwon is unlikely to face criminal prosecution, CNBC reported Thursday.
and legal experts describe.
We are trying to prove what was going on in someone’s mind. It is often a very painstaking task.
He elaborated on the process, saying that he “reviewed a lot of documents, talked to a lot of people, handled all their lawyers through that process, set up grand jury times and appearance schedules.”
Former federal prosecutor and trial attorney Renato Mariotti emphasized that prosecutors must prove a defendant’s state of mind beyond a reasonable doubt and “often rely on emails, texts, tweets, and other statements.”
Eliasson cited the example of Theranos and former CEO Elizabeth Holmes. In this case, they told investors they were using their own machines to run blood samples, when in fact they were using machines from other companies to run the tests. Iriasson opined.
Such things are quite suggestive of an actual intent to deceive and defraud, as opposed to mere misjudgment, mistake, or other lesser forms of fraud.
Unlike criminal cases, the burden of proof in civil cases is much lower and is usually based on a preponderance of the evidence. Under the preponderance standard, the burden of proof is met when the responsible party has convinced the fact finder that there is more than a 50% chance that the allegations are true.
Often, in these types of cases, the appropriate remedies end up civil, regulatory, and administrative – and not really criminal.
Civil cases may include lawsuits from crypto investors. In South Korea, a class action lawsuit has already been filed against Kwon, his company Terraform Labs, and its co-founder.
In the United States, Kwon is already in trouble with the U.S. Securities and Exchange Commission (SEC). He dodged several subpoenas earlier this year and filed a motion against the regulator.
“In addition to private parties who have been harmed, there are many other potential agencies or governments that could look into this action,” the legal expert noted, adding.
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