In a significant development, Terraform Labs co-founder Do Kwon was handed over to United States law enforcement by authorities in Montenegro after a months-long battle over where he would be extradited.
Montenegrin Prime Minister Confirms US Custody
On December 31, Montenegrin Prime Minister Milojko Spajić took to the social media platform X to announce that Kwon was indeed in US custody and would face criminal charges in the case involving the collapse of Terra. The confirmation came just four days after the Montenegrin Justice Minister Bojan Božović approved the extradition, rejecting a petition from South Korea.
Background on Kwon’s Extradition
The extradition process has been ongoing for several months, with both the US and South Korea filing charges against the Terraform Labs co-founder and some Terraform executives. However, Kwon’s whereabouts were unknown until he was arrested in Montenegro in 2023. The prolonged battle over his extradition had left many wondering where he would ultimately be sent.
South Korean Court Issues Arrest Warrant for Impeached President Yoon
In a separate development, the Seoul Western District Court approved an arrest warrant for President Yoon Suk Yeol on December 31, 2024. This marked a significant move against the impeached president, who is accused of attempting to impose martial law in early December.
Yoon’s Impeachment and Subsequent Arrest Warrant
According to reports, Yoon was stripped of power on December 14 when the country’s parliament voted to impeach him. He was replaced by Deputy Prime Minister and Finance Minister Choi Sang-mok as interim president. The impeachment came after Yoon failed to report for questioning for the third time.
A First in South Korean History
This marked a historic moment, as Yoon became the first sitting South Korean president to face an arrest warrant granted by a court. The decision was made after a joint investigative task force requested an arrest warrant for him. The development has sent shockwaves through the country’s political landscape.
Pro-Crypto Lawyer John Deaton Offers to Probe Operation Chokepoint 2.0
In related news, pro-crypto lawyer John Deaton offered to lead a probe into Operation Chokepoint 2.0 on January 4. The initiative, which aimed to cut crypto companies out of the traditional banking system, has raised concerns about regulatory overreach.
Deaton’s Offer and Background on Operation Chokepoint 2.0
Deaton, who is well-known for his efforts to support Ripple’s legal battle with the US Securities and Exchange Commission (SEC), expressed his willingness to lead a probe into Operation Chokepoint 2.0 without salary. He emphasized that the initiative creates a "dangerous precedent" where regulatory bodies can quietly suppress entire industries they disfavor.
Court Order Allows Coinbase to Obtain Unredacted Files
Deaton’s offer followed on the heels of a court order allowing crypto exchange Coinbase to obtain unredacted files from the Federal Deposit Insurance Corporation (FDIC). The unconfirmed operation has raised concerns about regulatory overreach and potential suppression of entire industries.
China Tightens Crypto Trade Oversight with New Forex Rules
In another development, China’s foreign exchange regulator introduced new rules that require banks to monitor and flag risky trades involving crypto assets. The move is aimed at making it harder for residents to purchase digital assets and use them for cross-border gambling, underground banks, and illegal financial activities.
Impact of China’s New Rules
The new rules will also require banks to track the activities based on the identity of the institutions and individuals involved, as well as the sources of their funds and the frequency of their trades. The move is expected to have a significant impact on crypto trade oversight in China.
Conclusion
The extradition of Do Kwon to the US marks a significant development in the ongoing saga surrounding Terraform Labs. Meanwhile, the arrest warrant issued against President Yoon Suk Yeol has sent shockwaves through South Korea’s political landscape. The introduction of new forex rules in China is also expected to have far-reaching implications for crypto trade oversight.
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