The investigation into the TerraUSD crypto crash has taken an important turn, as the South Korean prosecutor leading the case has called for the extradition of crypto entrepreneur Do Kwon to his home country. The crash wiped out $40 billion from digital currency markets, leaving investors reeling.
Crypto Entrepreneur Do Kwon Faces 40-Year Jail Term In South Korea
According to the Wall Street Journal, The legal battle for crypto entrepreneur Do Kwon has intensified, as South Korean prosecutors and their US counterparts vie for his extradition from Montenegro, where he has been detained since March.
Furthermore, South Korean prosecutors are seeking Kwon’s extradition in order to bring him to justice in his home country. However, US prosecutors have also expressed interest in the case, and are reportedly working to extradite Kwon to face charges in the US.
Kwon, who founded the blockchain platform Terraform Labs, has been accused of fraudulent activities and mismanagement of funds in the crypto industry. The crash of TerraUSD and Luna, which were both launched on his platform, resulted in significant losses for investors worldwide.
If Kwon is extradited to South Korea, he could face a lengthy jail term for his alleged crimes. The prosecutor has said that he is committed to bringing justice to the victims of the TerraUSD crash and that Kwon’s extradition would be a significant step towards achieving that goal.
SEC Rewards Whistleblower With $279 Million For Exposing Securities Law Violations
The US Securities and Exchange Commission (SEC) has announced a historic award of nearly $279 million to a whistleblower who provided valuable information and assistance leading to successful enforcement actions. This is the largest award in the SEC’s whistleblower program’s history, more than doubling the previous record of $114 million issued in October 2020.
Today we announced the largest-ever award, nearly $279 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions.https://t.co/GGwiZ4BQUf
— U.S. Securities and Exchange Commission (@SECGov) May 5, 2023
The whistleblower’s sustained assistance, including multiple interviews and written submissions, was critical to the success of these actions, according to Creola Kelly, Chief of the SEC’s Office of the Whistleblower. While the whistleblower’s information did not prompt the opening of the Commission’s investigation, it expanded the scope of the misconduct charged.
The size of the award incentivizes whistleblowers to come forward with accurate information about potential securities law violations, said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. He added that the success of the whistleblower program directly benefits investors, as whistleblower tips have contributed to enforcement actions resulting in orders requiring bad actors to disgorge more than $4 billion in ill-gotten gains and interest.
The SEC’s unprecedented award sends a strong message to potential whistleblowers and reinforces the importance they give to the whistleblower program in the fight against securities law violations.
The SEC has already taken steps to regulate the crypto industry, with several high-profile enforcement actions against fraudulent ICOs and other scams. However, this might be seen as another tool for the SEC to use to avoid fraudulent actions such as Do Kwon’s with the Terra and Luna crash.
Featured image from Unsplash, chart from TradingView.com