In a landmark decision by a New York jury, Terraform Labs along with its Co-Founder, Do Kwon, have been convicted of fraud, accused of misleading investors regarding the stability of its stablecoin, UST. The case stemmed from the dramatic collapse of Terra's UST in 2022, which resulted in a staggering $40 billion loss for investors, causing widespread turmoil within the cryptocurrency industry. This verdict comes after a two-week trial and represents a notable victory for the Securities and Exchange Commission (SEC) in its efforts to enhance regulatory control over the burgeoning digital currency market.
The outcome of this trial could also signal what might be expected in the upcoming criminal cases against Kwon, both in the United States and South Korea. In these jurisdictions, the thresholds for proving guilt are notably higher. Kwon, who holds a dominant 92% control over Terraform Labs, was apprehended in Montenegro on charges of using a fake passport. Currently, he is at the center of a legal tug-of-war concerning his extradition between the U.S. and South Korea, both of which are seeking to prosecute him for criminal fraud.
A recent decision by Montenegro’s Supreme Court has increased the likelihood of Kwon's extradition, overturning prior rulings that had recommended sending him to Seoul.
The jury, after less than two hours of deliberation, found that Kwon and Terraform Labs had falsely represented the capabilities of their blockchain technology in its application with Chai, a popular payment app in Korea. Moreover, the verdict highlighted the dissemination of misleading information regarding the stability of the UST stablecoin, which was allegedly designed to maintain a constant value tied to the US dollar through algorithmic means. This judgment underscores the growing scrutiny and legal challenges facing the crypto industry, particularly regarding the transparency and reliability of stablecoins and blockchain technology.
#crypto #fraud #dokwon #terraform

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Terra co-founder, Do Kwon, currently embroiled in a passport forgery case in Montenegro, had his bail revoked by the court following objections from prosecutors who cited concerns about flight risk and the bail amount.

In the midst of growing discussions surrounding his potential extradition, Do Kwon has enlisted the services of Dentons, the renowned law firm, to handle his legal affairs pertaining to lawsuits and investigations in the United States. Digital Asset reported on May 29 that Dentons, ranking sixth among global law firms in 2023, holds the distinction of being the largest law firm worldwide based on its number of lawyers.

The legal woes for Do Kwon commenced earlier this year when the US Securities and Exchange Commission (SEC) filed a lawsuit against both Do Kwon and Terraform Labs, accusing them of fraud and the sale of unregistered securities. Subsequently, in March, the US District Attorney's Office for the Southern District of New York indicted Do Kwon on eight charges, encompassing securities fraud, wire fraud, commodities fraud, and conspiracy.

Dentons had previously represented Do Kwon in challenging a subpoena from the US SEC during its investigation into the Mirror Protocol in 2021, as well as in a class action lawsuit in the Singapore High Court in 2022. Furthermore, the law firm has been serving as legal counsel for Terra in various other legal disputes.

Increasing Legal Scrutiny Targets Terra Executives

South Korean authorities gear up for Do Kwon's potential extradition as prosecutors assert that they possess additional evidence and cases against him. Notably, Terraform Labs and Do Kwon made substantial cryptocurrency withdrawals in May, amounting to millions.

Simultaneously, Terra co-founder Daniel Shin is set to face his initial trial at the Seoul Southern District Court. In preparation for his defense, Shin has assembled a formidable team of 30 lawyers, including a prosecutor with prior experience investigating the Terra-LUNA crises.

#coingabbar #terra #dokwon #luna #crypto2023

South Korean authorities want Do Kwon extradited to South Korea, victims’ justice depends on it.

He should return to where most crimes occurred, as this would facilitate a better investigation.

Repatriation would best serve the TerraUSD (USTC) victims and LUNA token collapses, the lead prosecutor.

Kwon could face 40 years in jail in South Korea.

South Korean authorities want the co-founder and former CEO of Terraform Labs, Do Kwon, to be extradited to South Korea, citing that “it would best serve the victims of the TerraUSD (USTC) and LUNA token collapses.

South Korean prosecutors push for Do Kwon extradition

From the report, the prosecutors, led by Dan Sung-han, are probing the crash of the two tokens that saw almost $40 billion erased from the Terra ecosystem. In an interview with the WSJ, they claimed that since most of the crimes for which Kwon is answerable occurred in South Korea, the investigation would achieve more if the accused was repatriated.

Given the nature of this incident, we think investigating the case in South Korea would be the most efficient way of bringing

As reported, Do Kwon was arrested in Montenegro on March 23 and later indicted on charges of forging documents. Since then, South Korean authorities and those in the US have been pushing for his extradition. Notably, Kwon, a South Korean citizen, is also wanted by Singapore authorities.

Factors determining Do Kwon’s extradition

In a press conference following the arrest, Justice Minister Marko Kovač of Montenegro said that a decision on Kwon’s repatriation would hinge on “several factors.” For starters, the severity of the criminal offense would play a role, as would the location and time of the offense.

Reportedly, no extradition treaties exist between Montenegro and Singapore or South Korea. Nevertheless, the country has an old extradition agreement with the US, with historical records of repatriating American citizens.  

In late April, another Terraform Labs co-founder, Shin Hyun-Seong, was indicted by South Korean officials, alongside nine other people, on charges of “fraud, breach of trust, and embezzlement” around the collapse of the Terra ecosystem.

According to the Korean daily KBS World, the accused were, and still are, answerable for earning unlawful profits of approximately $350 million (460 billion Korean won). If extradited, Kwon would also face the exact charges in his home country with a possible jail term of up to 40 years, according to Sung-han.

Notably, Terra was among the earliest cryptocurrency companies which brought the concept of algorithmic stablecoins to the limelight. The ecosystem toppled after the de-pegging of its native stablecoin TerraClassicUSD from the USD in May 2022. The action triggered a snowball crisis across the crypto sphere, and the effects are still felt to day.

#Binance #BTC #luna #lunc #dokwon

Do Kwon News: Explore the document forgery charges, the collapse of Terraform Labs, and the resulting industry recession.

Key Points

Controversial Do Kwon jail, crypto entrepreneur of Terraform Labs, explores his role and implications for the crypto industry.

Do Kwon is in jail for document forgery in Montenegro, facing extradition requests related to the collapse of Terraform Labs.

The collapse of TerraUSD and Luna token caused an industry recession, impacting major players and leading to potential severe legal consequences for Kwon.

The intricate world of cryptocurrencies has seen its share of controversies, among them the jailing of Do Kwon, the crypto entrepreneur behind Terraform Labs. This article explores why Do Kwon was jailed, his role in the crypto industry, and the implications of his actions on the crypto world, providing a closer look at what happens in a recession within the crypto industry.

Who is Do Kwon?

Do Kwon, known for his involvement in the domain of blockchain innovation and the digital coin industry, has been the subject of scrutiny regarding potential legal matters. 

During his tenure at Terraform Labs, Kwon's leadership was focused on developing a financial system by leveraging blockchain technology. The primary products of the company, namely the TerraUSD (UST) stablecoin and the Terra (LUNA) token, gained attention. The UST stablecoin was specifically designed to minimize price volatility commonly associated with cryptocurrencies by pegging its value to the U.S. dollar or a basket of assets.

The Luna token, on the other hand, served a different purpose. As Terraform's governance token, Luna was utilized by its holders to vote on important governance decisions regarding the Terra ecosystem. It also played a role in stabilizing the value of the UST, as it was algorithmically adjusted to maintain UST's peg to the U.S. dollar.

Kwon's vision with Terraform Labs was to create a stable digital currency that would be widely accepted and used across various internet platforms. This ambition, however, led him down a path fraught with legal and financial complications that not only impacted his personal life but also had significant ramifications on the crypto industry at large.

Why was Do Kwon jailed?

Do Kwon News: Arrested for fraud

Do Kwon's legal troubles began in the small Balkan nation of Montenegro, where he faced a court hearing on serious allegations of document forgery. The authorities arrested the Terraform Labs founder at Podgorica Airport as he and fellow executive Han Chang-Joon were preparing to embark on a flight to Dubai. According to the charges, Kwon and Han were found in possession of forged Costa Rican and Belgian passports, as well as fraudulent identity cards. This event marked the beginning of an intricate legal journey for the South Korean national, culminating in his detention.

Throughout the proceedings, Kwon firmly maintained his innocence, asserting that the documents in question were genuine. He and his legal team embarked on a series of efforts to secure his release, initially succeeding when the Basic Court in Podgorica agreed to a €400,000 ($436,000) bail. However, this short-lived victory was soon overturned as the Montenegrin High Court revoked the decision, leading to Kwon's return to custody.

Kwon's troubles didn't end within the boundaries of Montenegro. Authorities in both the United States and his home country of South Korea requested his extradition to face a series of serious charges related to the collapse of his multi-billion dollar crypto enterprise, Terraform Labs. The alleged violation of capital market laws and fraud resulted in the destabilization of the TerraUSD stablecoin, contributing to a significant recession within the crypto industry.

As Kwon remained incarcerated in Montenegro, courts deliberated over these extradition requests, adding another layer of complexity to his legal predicament. The implications of these charges extend far beyond Kwon's personal freedom, reaching into the broader crypto community and setting a sobering precedent for industry regulation and accountability.

The Implications of the LUNA Collapse

The collapse of the TerraUSD stablecoin and Luna token was a classic demonstration of what happens in a recession within the crypto industry. The implosion was precipitated by charges from the U.S. Securities and Exchange Commission (SEC) against Kwon and Terraform Labs for defrauding U.S. investors.

The fallout was massive, mirroring what happens in a recession as companies across the crypto industry were shaken to their core. This included bankruptcy filings from Three Arrows Capital, Voyager Digital, and Celsius Network. The contagion effect further led to the downfall of major players such as BlockFi and the FTX crypto exchange.

Kwon's possible extradition to South Korea or the U.S. could lead to severe legal consequences. South Korean prosecutor Dan Sung-Han has stated that if convicted, Kwon could face over 40 years of imprisonment.

Bottom Line

Do Kwon was jailed for document forgery charges in Montenegro, amid extradition requests from the U.S. and South Korea related to the collapse of Terraform Labs. This incident not only affected Kwon's freedom but also triggered a mini-recession within the crypto industry, leading to widespread fallout.

#luna #dokwon

In a significant turn of events, Do Kwon, the prominent figure behind the blockchain project Terra, has been granted bail release by the Montenegro Court. This decision has sparked curiosity and raised questions about the potential impact on Luna, the native cryptocurrency of the Terra ecosystem. In this article, we delve into the details of Do Kwon's bail release and explore what lies ahead for Luna amidst this development.

Do Kwon's Bail Release:

Do Kwon, the co-founder and CEO of Terra, has successfully obtained bail release from the Montenegro Court. The decision came after a period of legal uncertainty surrounding Do Kwon's situation. The specifics of the case leading to his arrest and subsequent release have not been disclosed publicly. Nevertheless, his bail release signifies a significant step forward for both Do Kwon personally and the Terra project as a whole.

Implications for Luna:

The news of Do Kwon's bail release naturally raises questions about the potential implications for Luna, Terra's native cryptocurrency. Luna plays a vital role within the Terra ecosystem, serving as the backbone of various decentralized applications (dApps) and powering the stablecoin protocol. The market's reaction to Do Kwon's release and the subsequent impact on Luna's price and ecosystem dynamics remain uncertain at this point.

Market and Community Sentiment:

The cryptocurrency market is highly sensitive to news and developments surrounding influential figures. Do Kwon's bail release may generate mixed reactions among investors and the Terra community. Some may view it as a positive development, signaling a step toward resolving any legal uncertainties that might have impacted the project. On the other hand, others may approach the news with caution, awaiting further information and clarification regarding the underlying circumstances.

Continued Development and Roadmap:

Amidst the news of Do Kwon's bail release, it is important to note that the Terra project and the Luna cryptocurrency will likely continue their development and roadmap as planned. Terra has gained significant traction in the blockchain space, with numerous partnerships and integrations that have strengthened its ecosystem. The project's commitment to innovation and its vision of enabling global financial infrastructure remains unchanged.

Regulatory Considerations:

While the details of Do Kwon's legal situation have not been publicly disclosed, it is worth highlighting the ongoing regulatory considerations that surround the cryptocurrency industry. The incident serves as a reminder of the need for compliance and the potential impact that legal matters can have on both individuals and projects within the crypto space. Regulatory clarity and adherence to legal frameworks will continue to be crucial as the industry matures.

Conclusion:

The bail release of Do Kwon by the Montenegro Court marks a significant development for both Do Kwon personally and the Terra project. As the co-founder and CEO of Terra, Do Kwon's role in the project's success cannot be understated. The news raises questions about the potential implications for Luna, the native cryptocurrency of Terra. Market and community sentiment, continued development, and regulatory considerations will shape the future of Luna in the wake of this development. As the situation unfolds, stakeholders will closely monitor any further updates regarding Do Kwon's legal proceedings and the potential impact on the Terra ecosystem and Luna's market dynamics.

#dokwon #BTC #Binance #crypto2023 #BNB

South Korean prosecutors have announced the identification of criminal proceeds totaling at least 410 billion won, while the amount of reimbursement reached 300 billion won. This revelation highlights the extent of criminal activity and the need for strong measures to combat it.

The prosecutors’ investigations have focused on a variety of criminal activities, including embezzlement, fraud, and money laundering. The funds that have been identified are believed to have been obtained through a range of illicit activities, such as the misappropriation of company funds or the sale of counterfeit goods.

The scale of the criminal activity uncovered by prosecutors is significant, with hundreds of billions of won being identified as criminal proceeds. This indicates the seriousness of the problem of financial crime in South Korea, and highlights the need for measures to combat it.

In addition to identifying the criminal proceeds, prosecutors have also been working to recover these funds. The amount of reimbursement reached 300 billion won, demonstrating the success of these efforts.

The recovery of these funds is a crucial step in combating financial crime, as it not only deprives criminals of their ill-gotten gains but also serves as a deterrent to others who may be tempted to engage in similar activities.

Overall, the identification of criminal proceeds totaling at least 410 billion won and the recovery of 300 billion won in reimbursement is a significant development in the fight against financial crime in South Korea. The efforts of prosecutors to identify and recover these funds serve as an important reminder of the need for continued vigilance in the fight against financial crime.

#terra #luna #fraud #crime #dokwon

Terra Luna Classic Announces Q2 Plan and Budget for Network Upgrade and Joint L1 Task Force

Terra Luna Classic (LUNC) core developer group, Joint L1 Task Force, has submitted its plan and budget for Q2. The group has completed several crucial blockchain upgrades, such as the v1.0.5 hotfix and v1.1.0, bringing back the Binance LUNC burn mechanism. Now, the group has scheduled another major blockchain upgrade, v2.0.0, for March 31, which will bring AI capabilities to the Terra Classic chain.

The Q2 plan includes testing for the v2.0.0 upgrade, providing technical advice and development support for Ziggy USTC repeg and deploy v2.1.0, and parity with Cosmos blockchain. The developer group will work with an L2 team to develop Classic Station to introduce on-ramp capability and help in testing and scheduling upgrades while reducing the burden on third parties.

The Q2 budget for the Joint L1 Task Force development team is $139.5k, similar to Q1. The distribution of payments will happen monthly after approval from the Oversight Committee and Terra Grants Foundation signers of the multisig. The community has expressed support for the Q2 plan of the Joint L1 Task Force group.

However, some popular members of the community suggested discussing tasks accomplished by the developer group in Q1 before proceeding to approve the Q2 budget. The LUNC price is currently trading at $0.00012, down 2% in the last 24 hours, while the USTC price also fell 2%, with the price currently trading at $0.021.

Takeaways:

Terra Luna Classic (LUNC) core developer group Joint L1 Task Force has submitted its plan and budget for Q2.

The group has completed several crucial blockchain upgrades and is scheduled to release v2.0.0 on March 31, which will bring AI capabilities to the Terra Classic chain.

The Q2 plan includes testing for the v2.0.0 upgrade, providing technical advice and development support for Ziggy USTC repeg and deploy v2.1.0, and parity with Cosmos blockchain.

The Q2 budget for the Joint L1 Task Force development team is $139.5k, similar to Q1, and the distribution of payments will happen monthly after approval from the Oversight Committee and Terra Grants Foundation signers of the multisig.

Conclusion:

Terra Luna Classic's Joint L1 Task Force has announced its Q2 plan and budget, which includes several crucial blockchain upgrades and the development of Classic Station to introduce on-ramp capability. The community has expressed its support for the plan, and the budget will be distributed monthly after approval from the Oversight Committee and Terra Grants Foundation signers of the multisig. As Terra Luna Classic moves forward with its Q2 plan, it will be interesting to see how the project progresses in the coming months.

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Terra Founder's Extradition Battle: US vs. South Korea

Do Kwon, the founder of Terraform Labs, the software startup behind the algorithmic stablecoin, Terra, was arrested in Montenegro with his business associate, Hon Chang-Joon, for allegedly entering the country illegally and forging official documents. South Korea and the US have both requested their extradition, but it is unclear to which country Kwon will be extradited.

Background Information on Terra Founder's Arrest and Extradition Requests:

Kwon and Joon were arrested at Montenegro's Podgorica airport last Friday for allegedly using fake Costa Rican passports in attempting to fly to Dubai. Both South Korea and the US have officially made their extradition requests, and Montenegro's justice minister has confirmed that South Korea is seeking the extradition of both individuals, while the US is only after Kwon.

Following the collapse of Kwon's algorithmic stablecoin last May, South Korea issued an arrest warrant for Kwon in September. Terra's demise wiped $20.5 billion in nominal value from personal crypto wallets, triggering a wave of liquidations, bankruptcies, and tumbling crypto markets. Interpol also issued a global request to arrest Kwon, and reports indicated he continually moved around Europe and Asia, including through Singapore and Serbia.

Extradition Process:

Kwon has been charged with securities fraud, wire fraud, and commodities fraud by prosecutors in New York shortly after his arrest in Montenegro. However, both Kwon and Joon are currently being investigated for possession of false documents and could face criminal proceedings that carry up to five years in prison. They could only be extradited after a court ruling, which could take time.

Takeaways:

The battle over Kwon's extradition between South Korea and the US highlights the international cooperation required to bring white-collar criminals to justice. The collapse of Terra and the subsequent fallout serve as a warning to investors about the risks of investing in unregulated cryptocurrencies.

Conclusion:

The extradition battle between South Korea and the US over the founder of Terra, Do Kwon, highlights the global nature of white-collar crime and the importance of international cooperation to bring criminals to justice. The collapse of Terra serves as a reminder of the risks associated with investing in unregulated cryptocurrencies and the need for greater regulatory oversight to protect investors.

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I'm passionate about providing you with the latest insights and analysis on the world of cryptocurrencies.

If you enjoy my content and want to show your support, please like, share, and follow me for more high-quality updates.

Thank you for your support, and let's continue to stay connected for more exciting content!

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