Economy - The Korea Times

Do Kwon, Korea's crypto 'genius' turned disgraced fugitive

Montenegrin police officers escort an individual who is believed to be one of the world's most wanted fugitives, South Korean citizen and Terraform Labs founder Do Kwon in Montenegro's capital of Podgorica, March 24. AP-YonhapOnce hailed as a genius, Korean entrepreneur Do Kwon ― now facing multiple criminal charges over his failed cryptocurrency ― was a brash industry figure whose fame disintegrated into global notoriety.After months on the run, the 31-year-old, whose full name is Kwon Do-hyung, was arrested Thursday in Montenegro after being caught trying to catch a flight using fake Costa Rican travel documents.He is accused of fraud over the dramatic implosion last year of his company Terraform Labs, which wiped out about $40 billion of investors' money and shook global crypto markets.Immediately after his arrest the United States hit him with a slew of charges over what they called a "multi-billion-dollar crypto asset securities fraud" and Korea, where he faces separate charges, said it wants to extradite him.The cryptocurrency he created, an "algorithmic stablecoin" called Terr

Mar 25, 2023

Do Kwon, Korea's crypto 'genius' turned disgraced fugitive

Montenegro charges crypto fugitive Do Kwon with forgery

Do Kwon, the cryptocurrency entrepreneur, who created the failed Terra (UST) stablecoin, is taken to court in Podgorica, Montenegro, March 24. Reuters-YonhapProsecutors in Montenegro charged fugitive cryptocurrency entrepreneur Do Kwon with forgery, Friday, with South Korean officials vowing to press for his extradition.The Terraform founder is accused of fraud for his company's dramatic collapse last year, which wiped out about $40 billion of investors' money and shook global crypto markets.Kwon, whose full name is Kwon Do-hyung, was arrested with a companion Thursday at the airport in the Montenegrin capital of Podgorica after he was found to be travelling with fake documents."A criminal complaint was filed against both persons for the criminal offence of document forgery," Montenegro's police said Friday.A Podgorica court said it had remanded both Kwon and his companion in custody for up to 30 days over suspected document forgery "due to flight risk".Kwon now faces two cases in Montenegro ― the first involving his alleged possession of forged documents and the second regarding his

Mar 25, 2023

Montenegro charges crypto fugitive Do Kwon with forgery

What's next for Terra founder Do Kwon?

Montenegrin police officers escort Do Kwon, a crypto fugitive from Korea, in Montenegro's capital Podgorica, Friday. Seoul's Ministry of Justice confirmed the arrest of Kwon and another unidentified individual linked to the cryptocurrency crash and said it will proceed with steps to extradite them to Korea. Both Korea and Montenegro are signees to the European Convention on Extradition. AP-YonhapKorean fugitive protests Montenegro's decision to extend his custody for 30 daysBy Lee Min-hyungThe arrest of Do Kwon, founder of the ill-fated Terra-Luna ecosystem, made headlines, but it remains unclear when Korean investigators will be able to repatriate him, since he was also charged with fraud by U.S. prosecutors.According to Interpol and Montenegro's interior ministry, Kwon was arrested by police in the Balkan country on Thursday.Kwon was initially subject to be in custody for three days. But a Montenegrin court extended the custody for up to 30 days “due to flight risk.”Kwon protested the court's decision, and through his lawyer, is going to file a complaint to be released.

Mar 24, 2023By Lee Min-hyung

Crypto founder Do Kwon is indicted in US, following Montenegro arrest

Smartphone with Terra logo is placed on displayed U.S. dollars in this illustration taken May 11, 2022. Reuters-YonhapDo Kwon, the cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion or more last year, has been charged with fraud by U.S. prosecutors.An eight-count indictment against Kwon was made public in the U.S. District Court in Manhattan, several hours after news of his arrest earlier Thursday in Montenegro.Lawyers for Kwon in the United States did not immediately respond to requests for comment after business hours.Thursday's indictment charges Kwon, a South Korean national who co-founded Terraform Labs and developed the TerraUSD and Luna currencies, with two counts each of securities fraud, wire fraud, commodities fraud and conspiracy.The criminal case follows related U.S. Securities and Exchange Commission civil charges against Kwon and Terraform last month.Kwon had been a fugitive for several months, and South Korean authorities issued an arrest warrant for him last September.Montenegro's interior ministry said local police detained a

Mar 24, 2023

Crypto founder Do Kwon is indicted in US, following Montenegro arrest

Suspected Terraform co-founder arrested in Montenegro: police

Do Kwon/ Korea Times fileA suspect presumed to be the wanted chief of blockchain firm Terraform Labs was arrested in Montenegro, police said Thursday. The man is suspected to be Do Kwon, wanted co-founder and CEO of the company, whom the prosecutors spotted in Serbia in December last year, after his short exile in the United Arab Emirates and Singapore.Police said the suspect's passport name, age and country of birth match those of Kwon. They also requested the man's fingerprints be scanned for identification.The disgraced entrepreneur has been under investigation for alleged fraud and tax evasion after investors in TerraUSD and Luna filed complaints against Kwon in May, accusing him of a Ponzi scheme over the loss of billions of won following the crash of both coins. (Yonhap)

Mar 24, 2023

Suspected Terraform co-founder arrested in Montenegro: police

Crypto founder Do Kwon is indicted in US, following Montenegro arrest

Bitcoin extends super-rally amid SVB fiasco

An electronic board shows the price movement of Bitcoin at a customer center of Bithumb in Seoul, March 16. YonhapBy Lee Min-hyungBitcoin has extended a surprising super-rally over the past week on the growing likelihood that the U.S. Fed will slow down the pace of further rate hikes in the wake of sequential collapses of overseas financial institutions.According to data from the crypto market tracker, CoinMarketCap, Bitcoin is traded at around $27,000 as of 2 p.m. Sunday. This is an increase of around 35 percent since March 10 when Silicon Valley Bank (SVB) was shut down by U.S. regulators.The rare crypto rally caught the eyes of investors here and abroad, as Bitcoin achieved a much stronger rebound than stocks from Wall Street. The price of Bitcoin and Ethereum ― two mainstream cryptocurrencies ― have typically moved in tandem with major U.S. stock indices for the past few years.But investors preferred to purchase the world's largest cryptocurrency by market capitalization on the widespread belief that its price has already hit the bottom. Market analysts, however, warned of the po

Mar 19, 2023By Lee Min-hyung

Bitcoin extends super-rally amid SVB fiasco

Crypto-focused bank Silvergate plans to wind down following blow from FTX

A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken Oct. 19, 2021. Reuters-YonhapCrypto-focused bank Silvergate Capital said on Wednesday it planned to wind down operations and voluntarily liquidate after it was hit with losses following the dramatic collapse of crypto exchange FTX, sending its shares down 35 percent in after-hours trade.The decision to shutter the bank comes after the company warned last week that it was evaluating its ability to operate as a going concern, disclosing that it had sold additional debt securities this year at a loss and that further losses mean the bank could be “less than well capitalized.”The dire outcome for La Jolla, California-based Silvergate, one of the crypto industry's favored banks, shows the extent of the impact on the digital asset industry from the downfall of FTX which filed for bankruptcy in November after failing to cover customer withdrawals.In a statement, Silvergate said the decision to wind down its bank was "the best path forward" in light of "recent industry and regulatory

Mar 9, 2023

Crypto-focused bank Silvergate plans to wind down following blow from FTX

FSC to crack down on crypto phishing schemes

Financial Services Commission (FSC) headquarters in central Seoul / YonhapBy Anna J. Park In a move to root out phishing schemes in the country, the Financial Services Commission (FSC) announced a set of new measures that apply larger protections for victims of phishing schemes involving cryptocurrencies or mobile payment systems. The top financial regulator explained Tuesday that it has formed a taskforce with the prosecution, police and bank association as well as crypto exchanges to fight against new types of phishing schemes that target victims' cyber assets.The amount of phishing using cryptocurrencies soared to 19.96 billion won ($15 million) last year, up from 8.2 billion in 2020, as the country's law punishing telecommunications-based phishing schemes was not covering the area of cryptocurrencies and victims were unable to turn to financial authorities to recover their losses. The government hopes to effect change by applying the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund to crypto-related phishing schemes. With the new

Feb 28, 2023By Anna J. Park

FSC to crack down on crypto phishing schemes

Do Kwon transferred over 10,000 bitcoins to Swiss bank account

Do Kwon speaks during an interview with crypto media outlet Coinage at his office in Singapore, Aug. 16. Screenshot from Coinage's YouTube channelBy Lee Min-hyungDo Kwon reportedly transferred more than 10,000 bitcoins to a Swiss bank account after the abrupt collapse of his once-promising Terra-Luna ecosystem, for which a U.S. watchdog accused him and his firm of misleading investors by plotting the apparent crypto fraud.According to overseas reports, Kwon is known to have sent the bitcoins ― amounting to $240 million (312 billion won) ― to an un-hosted wallet used for custody of cryptocurrencies. The founder of the company ― which developed the controversial stablecoin Terra and its sister token Luna ― is also accused of cashing out more than $100 million of bitcoins via the undisclosed Swiss bank account since last June, shortly after the Terra-Luna ecosystem collapsed.The U.S. Securities and Exchange Commission (SEC) sued Kwon and Terraform Labs for allegedly plotting the crypto scam ― leading investors to lose billions of dollars. The authority said Kwon repeatedly misled invest

Feb 19, 2023By Lee Min-hyung

Do Kwon transferred over 10,000 bitcoins to Swiss bank account

Bitcoin surges 8.3% above $24,000

A representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration. Reuters-YonhapBitcoin surged 8.31 percent to $24,057 at 2038 GMT on Wednesday, adding $1,846 to its previous close.Bitcoin, the world's biggest and best-known cryptocurrency, was up 45.8 percent from the year's low of $16,496 on Jan. 1.Ether, the coin linked to the ethereum blockchain network, rose 6.91 percent to $1,664.1 on Wednesday, adding $107.5 to its previous close. (Reuters)

Feb 16, 2023

Cryptocurrency