Terraform Labs CEO Do Kwon is unlikely to face criminal charges in the U.S. over the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST), according to legal experts. They explained that civil charges are more likely, including lawsuits by cryptocurrency investors.
Do Kwon Unlikely to Face Criminal Charges
The recent collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST) has raised questions about whether their creator, Do Kwon, can be held accountable.
Randall Eliason, a professorial lecturer in law at the George Washington University Law School who spent 12 years as an assistant U.S. attorney for the District of Columbia, explained that Kwon is unlikely to be criminally prosecuted, CNBC reported Thursday.
Emphasizing that prosecutors have to prove criminal wrongdoing beyond a reasonable doubt, he was quoted as saying, “It’s not like a homicide where you bring in witnesses to testify to who pulled the trigger.”
The legal expert described:
We’re trying to prove what was going on in someone’s mind. That’s often a very painstaking process.
He elaborated that the process “involves reviewing lots and lots of documents, and talking to many, many people and dealing with all their lawyers through that process and scheduling grand jury time and court appearances.”
Renato Mariotti, a former federal prosecutor and trial attorney, stressed that prosecutors have to prove the defendant’s state of mind beyond a reasonable doubt, stating that they “often rely on emails, texts, tweets and other statements.”
Eliason 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 while in actual fact they were using other companies’ machines to perform tests. Eliason opined:
Things like that are pretty suggestive of intent to actually deceive and defraud versus just misjudgments, mistakes, or other lesser forms of…
Click Here to Read the Full Original Article at Bitcoin News…
