- Kwon’s legal situation is complicated by his arrest in Montenegro and extradition attempts by South Korea and the US.
- US SEC files civil charges against Terraform Labs and Kwon, increasing regulatory scrutiny on the crypto sector.
The story of Do Kwon, who went from cryptocurrency mogul to fugitive, reveals the complexities and risks associated with the cryptocurrency market.
The collapse of the TerraUSD and Luna cryptocurrencies in 2022, which resulted in the loss of around $37 billion in market value, not only marked a turning point for Terraform Labs, but also precipitated the downfall of several companies in the sector.
We released Do Kwon from prison at the end of his sentence for traveling on false documents. Since he is a foreign national and his documents were withheld, he was taken for an interview to the police directorate for foreigners, and they will deal with him at a later date.
Kwon’s subsequent disappearance and arrest in Montenegro for using forged travel documents, along with extradition attempts by South Korea and the United States, underscore the legal and regulatory challenges facing crypto pioneers.
Related: US prosecutors seek to stop former Binance CEO Zhao from leaving the country
Although Montenegro has released Kwon, his status remains uncertain due to the withholding of his passport, which keeps future legal action and its repercussions for him and his company on hold.
The imposition of civil charges by the U.S. Securities and Exchange Commission (SEC) against Terraform Labs and Kwon suggests more rigorous regulatory scrutiny toward crypto projects, especially those in the algorithmic stablecoins sector. This regulatory attention could influence the development, promotion and regulation of future related financial projects.
These events surrounding Do Kwon and TerraUSD and Luna Classic highlight not only the legal and regulatory challenges for innovators in the crypto space, but also the importance of transparency, accountability and careful risk assessment in the launch and management of cryptocurrencies and blockchain-based platforms, as we have written about on ETHNews.
The price at the end of this issue of Terra Classic USD (LUNC-USD) is approximately 0.000168 USD, experiencing an increase of 9.60% recently. The price range for the day has been 0.000161 USD to 0.000172 USD.
In the last year, Terra Luna Classic has fluctuated between 0.000055 USD and 0.000275 USD. With a market capitalization of around USD 978.017 million and a circulating supply of approximately 5.83 trillion LUNC, Terra Classic has shown high volatility.
