After a months-long battle over where he would be extradited, Terraform Labs co-founder Do Kwon was handed over to United States law enforcement by authorities in Montenegro. This development comes after the Montenegrin Justice Minister approved the extradition, rejecting a petition from South Korea despite Kwon holding citizenship and facing charges there.
A Brief Background on Do Kwon’s Extradition Battle
Do Kwon, along with some Terraform executives, had been charged by both the US and South Korea in relation to the collapse of Terra. However, his whereabouts were unknown until he was arrested in Montenegro in 2023. The extradition battle had been ongoing for months, with multiple countries involved.
Montenegrin Prime Minister Announces Kwon’s Handover
In a December 31st X post, Montenegrin Prime Minister Milojko Spajić announced that Do Kwon was in US custody and would face criminal charges related to the Terra collapse. This move came four days after the Montenegrin Justice Minister approved the extradition.
South Korea’s Involvement in the Extradition Battle
Despite holding South Korean citizenship, Do Kwon’s petition for extradition to South Korea was rejected by the Montenegrin Justice Minister. Both the US and South Korea had filed charges against Kwon and other Terraform executives, but it remains unclear why the Montenegrins chose to hand him over to the US.
South Korean Court Issues Arrest Warrant for Impeached President Yoon
On December 31st, 2024, the Seoul Western District Court approved an arrest warrant for President Yoon Suk Yeol. This is a significant development in South Korea’s politics, as Yoon is the first sitting president to face an arrest warrant granted by a court.
Reasons Behind Yoon’s Arrest Warrant
According to reports, Yoon was attempting to impose martial law in early December, which led to his impeachment and suspension from office. He failed to report for questioning on three occasions, prompting a joint investigative task force to request an arrest warrant.
Consequences of Yoon’s Actions
Yoon’s actions have significant implications for South Korea’s politics. As the country’s first sitting president to face an arrest warrant, this move marks a new era in the country’s political landscape.
Pro-Crypto Lawyer John Deaton Offers to Probe Operation Chokepoint 2.0
On January 4th, former US prosecutor and crypto advocate John Deaton offered to lead a probe into Operation Chokepoint 2.0. This alleged initiative aimed to cut crypto companies out of the traditional banking system.
What is Operation Chokepoint 2.0?
Deaton explained in an X post that Operation Chokepoint 2.0 ‘creates a dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor.’ He believes that if left unchallenged, this initiative would have severe consequences for the crypto industry.
Court Order Allows Coinbase to Obtain Unredacted Files
A recent court order has allowed crypto exchange Coinbase to obtain unredacted files from the Federal Deposit Insurance Corporation. This move is a significant development in the investigation into Operation Chokepoint 2.0, as it could provide crucial evidence of the alleged initiative.
Deaton’s Offer to Probe Operation Chokepoint 2.0
In response to the court order, Deaton offered to lead a probe into Operation Chokepoint 2.0 without salary. His offer is a testament to his dedication to supporting the crypto industry and ensuring that regulatory bodies are held accountable.
China Tightens Crypto Trade Oversight with New Forex Rules
On December 31st, China’s foreign exchange regulator introduced new forex rules that require banks to monitor and flag risky trades involving crypto assets. This move is aimed at preventing residents from using digital assets for cross-border gambling, underground banks, and illegal financial activities.
Implications of China’s New Forex Rules
The introduction of these new rules makes it harder for Chinese residents to purchase digital assets and use them for illicit activities. The regulators will require banks to track the activities based on the identity of institutions and individuals involved, as well as the sources of their funds and trade frequency.
Conclusion
Do Kwon’s handover to US authorities marks a significant development in the Terra collapse case. Meanwhile, the South Korean court’s decision to issue an arrest warrant for President Yoon raises questions about the country’s politics. The crypto industry is also facing new challenges with Operation Chokepoint 2.0 and China’s introduction of new forex rules.
