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.
Background
Kwon’s handover to the US occurred four days after the Montenegrin Justice Minister Bojan Božović approved the extradition, rejecting a petition from South Korea. Despite Kwon holding citizenship and facing charges there, the Montenegrin government chose to extradite him to the United States.
US and South Korean Charges
Both the US and South Korea had filed 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.
South Korea Impeaches President Yoon Suk Yeol
In a separate development, on December 31, 2024, the Seoul Western District Court approved an arrest warrant for President Yoon Suk Yeol. This marked a significant moment in South Korean history as Yoon became the first sitting president to face an arrest warrant granted by a court.
Background of Impeachment
Yoon was impeached and suspended from office after attempting to impose martial law in early December. He had failed to report for questioning for the third time, prompting a joint investigative task force to request an arrest warrant.
Interim President Takes Over
Following Yoon’s impeachment on December 14, Deputy Prime Minister and Finance Minister Choi Sang-mok took over as interim president.
Probing Operation Chokepoint 2.0
On January 4, 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.
Background on Operation Chokepoint 2.0
Deaton stated in an X post that Operation Chokepoint 2.0 ‘creates a dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor’ if left unchallenged. He emphasized the importance of investigating this alleged initiative to ensure that regulatory agencies do not overstep their authority.
Crypto Exchange Coinbase and Operation Chokepoint 2.0
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) to investigate their role in Operation Chokepoint 2.0.
Crypto Advocacy
Well-known for his efforts to support Ripple’s legal battle with the US Securities and Exchange Commission (SEC), Deaton expressed his willingness to accept the task without salary.
China Tightens Crypto Trade Oversight
On December 31, the South China Morning Post reported that the Chinese foreign exchange regulator had introduced foreign exchange rules requiring banks to monitor and flag risky trades involving crypto assets.
New Forex Rules
The report stated that mainland China’s new rules would make it harder for residents to purchase digital assets and use them for cross-border gambling, underground banks, and illegal cross-border financial activities. Chinese regulators will require banks to track the activities based on:
- The identity of the institutions and individuals involved
- The sources of their funds
- The frequency of their trades
Impact on Crypto Trade in China
China’s new regulations aim to reduce the risks associated with crypto trade and prevent illicit activities. However, critics argue that these measures may have unintended consequences, such as limiting access to legitimate financial services.
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