JUST

Gary

<p>The cryptocurrency landscape has been shaken by a dramatic development: Do Kwon, the eminent digital financier famously referred to as the &#8216;cryptocrash king&#8217;, has been sentenced to a four-month imprisonment term in Montenegro. Kwon, the mastermind behind the catastrophic $40 billion crash of the digital tokens terraUSD and Luna, was found guilty of falsifying official documents, casting a shadow on his once-lustrous reputation.</p>
<h2 style="text-align: center;" id="dual-convictions">Dual Convictions</h2>
<p>In an intriguing twist, Han Chang-joon, the erstwhile finance officer of Kwon&#8217;s brainchild, <a href="https://walletinvestor.com/magazinadmin/terra-co-founders-seek-400k-bail-and-house-arrest-ahead-of-june-trial-in-montenegro/">Terraform Labs</a>, was also meted out a similar sentence, highlighting the far-reaching implications of their fraudulent acts. The duo initially pleaded not guilty at their inaugural court hearing in May, with their sentences accounting for the time they have spent in detention since their arrest in March.</p>
<h2 style="text-align: center;" id="the-right-to-appeal">The Right to Appeal</h2>
<p>Despite the weightiness of the charges, both Kwon and Han have been granted the right to contest the verdict. They can lodge an appeal within eight days of receiving a written notification from the court, an opportunity that provides a glimmer of hope amidst a grim legal ordeal.</p>
<h2 style="text-align: center;" id="the-role-of-international-regulators">The Role of International Regulators</h2>
<p>In February, Kwon and Terraform Labs found themselves in the crosshairs of US regulators. The US Securities and Exchange Commission (SEC) charged them with orchestrating a colossal crypto asset securities fraud. According to SEC chairman Gary Gensler, Terraform and Kwon failed to deliver full, fair, and truthful disclosure as mandated for a range of crypto asset securities, with Luna and TerraUSD being the most significant.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">JUST IN:<a href="https://twitter.com/hashtag/DoKwon?src=hash&amp;ref_src=twsrc%5Etfw">#DoKwon</a> Latest :<br />
Judge Ivana Becic will make a ruling at 2:00 pm -19th June in &#8216;fake passport case&#8217; <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a> <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> <a href="https://twitter.com/hashtag/lunc?src=hash&amp;ref_src=twsrc%5Etfw">#lunc</a> <a href="https://t.co/hNyACXR4ib">pic.twitter.com/hNyACXR4ib</a></p>
<p>— Crypto Macro (@cryptomacro14) <a href="https://twitter.com/cryptomacro14/status/1670063461060202501?ref_src=twsrc%5Etfw">June 17, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="south-korea-8217-s-stance">South Korea&#8217;s Stance</h2>
<p>The ripple effects of Kwon&#8217;s actions have not gone unnoticed in his homeland. Last year, a South Korean court issued arrest warrants for Kwon and five other individuals linked to the case. Prosecutors posited that Terraform Labs, registered in Singapore, had contravened capital market rules, thereby exacerbating the gravity of the charges against Kwon.</p>
<h2 style="text-align: center;" id="no-extradition-treaty">No Extradition Treaty</h2>
<p>A key factor in this intricate narrative is Montenegro&#8217;s lack of extradition treaties with the US or South Korea, potentially complicating future legal proceedings. Kwon&#8217;s sentencing in Montenegro presents an intricate geopolitical conundrum, especially given his pending charges in multiple jurisdictions.</p>
<h2 style="text-align: center;" id="the-market-aftershock">The Market Aftershock</h2>
<p>The fallout from the implosion of the terraUSD stablecoin and the associated Luna token was far from confined to the courtroom. In May 2022, the cryptocurrency markets quaked under the tremors of their collapse, reflecting the profound influence of Kwon&#8217;s actions and the reverberations felt across the global financial landscape.</p>
<p>In conclusion, the jailing of Do Kwon marks a landmark chapter in the annals of cryptocurrency regulation, serving as a stern reminder of the risks and potential repercussions in the rapidly evolving world of digital finance.</p>

South Korea’s ‘Cryptocrash King’ Do Kwon Jailed

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