Do Kwon is the CEO of Terraform, a company that develops open source software with international operations. He currently faces an eight charge felony legal complaint, including fraud, securities fraud, mail fraud, and commodity fraud, in the United States. Even if found guilty of all charges, Kwon could face more than 100 years in prison which is much higher than the maximum of 40 years in South Korea.

Meanwhile, Sam Bankman-Fried, the CEO of FTX, was indicted with up to 13 counts of fraud and a possible sentence of more than a century in jail. He recently entered a plea of not guilty. Kwon, like Sam, is represented by a defense lawyer who has claimed in the past that Terraform’s business has ‘limited contact’ with the United States.

Cryptocurrencies, which are widely being used as a medium of exchange and investment, are subject to securities laws in the US. This means a violation of these laws could have serious repurcussions for any individual or company. As a result, Kwon may be attempting to avoid litigation in the US by downplaying his company’s ties to the country.

In South Korea, the legal status of cryptocurrencies is still indecisive. Consequently, South Korean authorities have not been able to form regulations typical to that of the US. That’s why Ethereum Foundation’s members in Korea took a pro-innovation approach to engaging with the government. They opted to discuss and educate the respective ministries and lawmakers on the difference between cryptocurrencies and traditional financial products with regulation being key to the industry.

Therefore, to conclude, the circulation of cryptocurrencies has made it possible for crypto-businesses and investors to allegedly commit fraud. To tackle this problem, appropriate jurisdiction and regulations must be in place to make sure that the individuals or companies are not evading law enforcement for the sake of a lower penalty.



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