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Updated 24 March 2023

Do Kwon (centre) was taken to court in handcuffs on Friday

South Korea police say that Do Kwon, the fugitive cryptocurrency boss behind the $40bn (32.5bn) collapse of the terraUSD and Luna tokens, has been arrested in Montenegro.

He has since been charged with fraud by prosecutors in the US.

Earlier this year US regulators accused Mr Kwon and his company Terraform Labs of "orchestrating a multi-billion dollar crypto asset securities fraud".

The firm did not immediately respond to a BBC request for comment.

They had thought he was in Serbia, and even sent officials to Belgrade to negotiate, since the two nations do not have an extradition treaty.

Mr Kwon has previously denied he was in hiding but never revealed his location.

News of his arrest was first shared by Montenegro's interior minister Filip Adzic, who said on Twitter that "one of the world's most wanted fugitives" had been detained at Podgorica's airport.

Mr Adzic added that the suspect was allegedly travelling under a false name with fake documents. Authorities were waiting for official confirmation of the man's identity, he said.

On Friday, South Korea police confirmed that the suspect in Montenegro was Mr Kwon, after his fingerprints matched official records.

Mr Kwon has separately been charged with fraud by US prosecutors.

He faces charges of securities fraud, wire fraud, commodities fraud and conspiracy, according to an indictment made public at the US District Court in Manhattan on Thursday. A lawyer for Mr Kwon did not immediately respond to BBC requests for comment.

Montenegro does not have extradition treaties with the US or South Korea.

In February, US financial regulators said Mr Kwon and Singapore-based Terraform Labs "failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for Luna and TerraUSD."

They allegedly repeatedly claimed that the tokens would increase in value, and misled investors about the stability of TerraUSD.

However, the value of the token and its linked Luna cryptocurrency plunged to close to zero last May.

It triggered a sell-off in major cryptocurrencies such as Bitcoin, Ethereum and Tether. As a result the term cryptocrash trended online.

Globally, investors in TerraUSD and Luna lost an estimated $42bn, according to blockchain analytics firm Elliptic.

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Do Kwon: Fugitive 'cryptocrash' boss arrested in Montenegro - BBC

Editors Note: This article has been updated to include a rebuttal from the CEO of Cryptobuyer denying rumors of the exchange closures (despite Cryptobuyer tweeting earlier about the closures), as well as an update from Asonacrip on the states where mining farms have been closed.

From crypto paradise to crypto chaosthe situation for cryptocurrency enthusiasts in Venezuela has been anything but good in recent days.

Following the arrest of Joselit RamirezVenezuelas Superintendent of Cryptoassetsand President Nicolas Maduro's order to restructure the countrys crypto regulatory agency, every day has brought bad news for the national crypto ecosystem.

Most recently, the new Superintendent of Cryptoassets is apparently unhappy with the way the industry has developed and ordered the closure of all cryptocurrency exchanges registered in Venezuela with Venezuelas National Superintendency of Cryptoassets Sunacripthe countrys crypto regulator.

Although the drastic move has not been officially confirmed, Venezuelas National Association of Cryptocurrencies told to Decrypt that such actions are taking place, as the country advances an anti-corruption investigation that has so far cut off the proverbial heads of Joselit Ramirez and his political protector Tareck el Aissami, the Minister of Energy and Petroleum.

"We believe that private companies should not be blamed for what is happening inside the regulatory body and that we should promote the full activation of all cryptocurrency operations (in the country)," Jose Angel Alvarez, Asonacrip president, told Decrypt.

Alvarez added that "we are preparing a list of propositions to be delivered soon to Sunacrip and Dr. Anabel Pereira." Anabel Pereira is the new head of Sunacrip.

Asonacrip opened a public survey so that cryptocurrency enthusiasts in Venezuela can provide input on the recommendations that will be delivered to the Sunacrip intervention board.

Just before the crackdown, it was also announced that Sunacrip also ordered the closure of large cryptocurrency mining farms operating in several states in Venezuela.

"Indeed, at the beginning of the week in the state of Carabobo, all the farms were ordered to stop, which concerns us as a community since some affiliates are being affected by the measure," Alvarez said.

So far, Asonacrip has confirmed shutdowns of mining farms in the states of Carabobo, Lara and bolvar.

Asonacrip called for a review of these actions, noting that the vast majority of the mining farms were operational and complied with all the necessary permits. "We believe that although there is a situation in the superintendency, it should not affect the operations of all affiliated farms at the regional level," Alvarez told Decrypt.

The recent course of events represents a 180-degree turn from previous years when President Maduro called for the promotion of cryptocurrencies as tools to reactivate Venezuela's economy.

During this period, the government legalized crypto, created its own official cryptocurrency (The Petro), established a regulatory framework for mining, institutionalized the registration of cryptocurrency exchanges, and began efforts to reduce the persecution of traders and miners who were seen as operators in the parallel currency market.

However, the centralization of power in Sunacrip also opened the doors to new forms of corruption. Currently, the participation of Sunacrip as an organizing node in a diversion of funds from undeclared oil sales is being investigated. There are already reports of irregularities circulating on social media, such as high-ranking government executives owning cryptocurrency mining farms, influence peddling, arbitrary detentions, and equipment confiscations.

Whats more, during this period, the Petro was changed from a decentralized, auditable, oil-backed, Ethereum-based token to a centralized, non-auditable token with its own blockchain and no real backing in tangible oil.

Cryptobuyer Venezuela's CEO, Eleazar Colmenares, released a video on the night of March 24th, denying rumors that Sunacrip had ordered the closure of cryptocurrency exchange platforms in the country. Cryptobuyer is a registered platform with Sunacrip.

"We want to clarify that the announcement made yesterday on our social media refers to the temporary non-operation of our crypto-fiat gateway service due to the transition process carried out by the competent authorities," said Colmenares in a statement shared by Globovisin news, "it is important to emphasize that the Sunacrip has not ordered the cessation of any Venezuelan exchange's operations," he added.

The clarification made by Colmenares refers to an announcement in which they emphasized that "complying with orders issued by our regulatory entity on crypto assets Sunacrip... our platforms will not be operational temporarily."

The day after that, and along with Colmenares' statement, Cryptobuyer published a new tweet saying that "at no time has Sunacrip ordered the cease of operations as has been misrepresented in some news media," while also claiming that the entity was providing them with "full support" for their operational continuity.

So far, however, Sunacrip has not made an official statement to clarify the confusion or set a roadmap for the new Directors' plans regarding crypto users, traders, miners, and exchanges.

According to Venezuelan lawyer Ana Ojeda Caracas' statements, the measures are apparently temporary. But the silence of Sunacrip only adds to the uncertainty in the Venezuelan crypto scene.

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Venezuela Regulator Shuts Down Some Cryptocurrency Exchanges and Mining Farms - Decrypt

A visual representation of the digital cryptocurrency, XRP.

S3studio | Getty Images

The XRP cryptocurrency soared on Wednesday as investors grew hopeful that Ripple, a company closely associated with the token, would win its prolonged legal battle with the U.S. Securities and Exchange Commission.

The token was worth around 45 cents at about 8 a.m. ET, according to data from CoinGecko, up over 11% in the last 24 hours. It was earlier trading up as much as 20%.

Traders pointed to a supplemental notice submitted by Ripple on Monday which pointed to a ruling in a separate case concerning Binance.US' rescue plan for collapsed crypto lender Voyager Digital. Under the plan, Binance's U.S. unit was to buy all of Voyager's assets, including its native VGX token, in a $1.3 billion deal.

The SEC rejected the plan, arguing VGX was akin to a security and calling Binance an unregistered securities exchange, according to the notice from Ripple.

However, the judge rejected the SEC's objections and approved the bankruptcy plan citing what he called the "vagueness" of the regulator's arguments and stating the SEC had not "offered any guidance at all as to just what it was that the Debtors allegedly were supposed to prove" to demonstrate VGX was not a security, according to the Ripple letter.

The SEC wasn't immediately available for comment when contacted by CNBC.

The SEC accuses Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen of breaching U.S. securities laws by selling XRP without first registering it with the regulator. Ripple contests the SEC's allegations, maintaining the view that XRP should be considered a digital currency rather than a security.

Monica Long, president of Ripple, told CNBC Wednesday morning that she was "very hopeful" about achieving a positive resolution to the SEC battle, adding she thinks it will reach a conclusion sometime this year.

Long said she thinks it's "very unlikely" the judge will rule in favor of the SEC "considering by our view both the facts and the law are on our side."

If XRP were to be deemed a security, it could have huge ramifications for the digital currency industry.

Floods of tokens may end up falling into the same category, making them regulated financial instruments that would need SEC supervision and frequent transparency disclosures.

Ripple and the SEC have now both submitted their final round of briefs seeking a summary judgment to the case. The case now rests with Judge Analisa Torres of the Southern District of New York, who is expected to issue a verdict soon.

It is not clear when she will make her decision. However, some crypto investors believe an outcome will arrive in the coming days.

XRP "is being bolstered by a potential positive outcome in the SEC case," Vijay Ayyar, vice president of international at crpyto exchange Luno, told CNBC via email Wednesday.

The token, which is the sixth-largest globally by market value, is also being boosted by the broader crypto market sentiment, Ayyar said.

Bitcoin is up 70% since the start of the year and is currentlytrading above $28,000for the first time in nine months. Ether, the second-biggest token, has risen 50% year-to-date.

"Overall, crypto markets have rallied in the past week or so, given the anticipationof a pause or slow down in interest rates and theslowdown in inflation," according to Ayyar.

Ripple's Long said she believed the SEC was regulating through enforcement rather than establishing clear regulations for the sector. Europe is more advanced in its treatment of crypto, she argued, highlighting the bloc's Markets in Crypto Assets regulation as an example.

"We're seeing action through enforcement vs. setting clear rules and regulation which is what all of us in the industry desire," Long said.

"Europe is really emerging as a leader in setting really clear regulations and rules that allow crypto companies and also traditional finance to embrace crypto."

For its part, the SEC has said it wants all crypto companies and projects to bring their operations into compliance with federal securities laws.

In an interview with CNBC in February after a crackdown on the crypto exchange Kraken, SEC Chair Gary Gensler said, "There's a handful of tokens that have actually registered. The intermediaries, the storefronts if you wish, the casinos that people are investing in and investing at need to properly comply and disentangle these bundled products."

"If this field has any chance of survival and success, it's time-tested rules and laws to protect the investing public."

In recent weeks, the regulator has taken aim at numerous crypto firms alleging they are engaged in illegal securities offerings.

Stablecoin issuer Paxos said the SEC served it with a notice threatening legal action over claims that BUSD, the native stablecoin of crypto exchange Binance, was a security that should have been registered with the regulator.

The regulator also hit crypto lender Genesis and exchange Gemini with charges alleging a high-yield investment product offered by the two companies should have been treated as a security.

WATCH: Bitcoin at $10,000 or $250,000? Investors are sharply divided on 2023

Originally posted here:
XRP cryptocurrency jumps as investors hope Ripple will win legal battle with the SEC - CNBC

FILE - An advertisement of Bitcoin, one of the cryptocurrencies, is displayed on a building in Hong Kong, on Nov. 18, 2021. Crypto exchange Bittrex was fined $24 million by U.S. authorities on Tuesday, Oct. 11, 2022, for helping clients evade U.S. sanctions in places such as Syria, Iran and Crimea. (AP Photo/Kin Cheung, File)

PIERRE, S.D. (KELO) A fight over the governors effort to stop a piece of nationally endorsed legislation from becoming law in South Dakota could be the main event Monday when the Legislature returns for the final work of its 2023 session.

HB-1193 is one of four vetoes from Governor Kristi Noem that lawmakers will consider that morning. Its the only one that made it through both chambers with more than the two-thirds majorities needed for a veto override.

The other three are HB-1209 that would allow hemp manufacturers to have THC content as high as 5% during part of the processing; SB-108 that would let underage students sip alcohol as part of school courses; and SB-129 that would give educators the same level of legal protections as law enforcement and first responders against violent crimes.

Governor Kristi Noem has labeled 1193 an attack on economic freedom. In a letter to the Legislature, she said the legislation would expressly exclude cryptocurrencies from the definition of money.

The bill came from several years of work by the national Uniform Law Commission. South Dakota Bankers Association president Karl Adam has strongly defended it, saying that the governor and those legislators who voted against it dont understand that it would allow banks to treat cryptocurrencies as controllable electronic records and accept them as collateral.

If we dont adopt the UCC amendments in our state, South Dakota could be set back in comparison to other states seeking to attract new businesses, Adam wrote in a blog post on Wednesday. As companies find new ways to create and unlock value in digital assets, they will likely gravitate to states that pass these amendments, which give them more legal and financial certainty. Weve already seen this happen. Just this week, North Dakota has adopted the UCC amendments.

But a group of legislators known as the South Dakota Freedom Caucus praised the veto and issued a seven-page rebuttal on Thursday. Were not backing down, Republican Rep. Aaron Aylward said in a statement, were taking a stand to support our governor and her veto of this dangerous legislation.

The House of Representatives is scheduled to gavel in Monday at 9 a.m. and will be the first to consider 1193 and 1209. The Senate comes in at 9 a.m. as well and will take up 108 and 129.

Should either chamber muster enough votes for an override 47 in the House and 24 in the Senate that specific bill would next move to the other chamber for a vote there.

The governor was successful in her first veto of the session, stopping HB-1109 that sought to let municipalities double their lodging-room tax to $4 or charge up to 4%.

Original post:
Cryptocurrency might be battle royale on South Dakota veto day - KCAU 9

Over the past 24 hours, Stellar's XLM/USD price has fallen 3.44% to $0.09. This is opposite to its positive trend over the past week where it has experienced a 1.0% gain, moving from $0.09 to its current price.

The chart below compares the price movement and volatility for Stellar over the past 24 hours (left) to its price movement over the past week (right). The gray bands are Bollinger Bands, measuring the volatility for both the daily and weekly price movements. The wider the bands are, or the larger the gray area is at any given moment, the larger the volatility.

Stellar's trading volume has climbed 6.0% over the past week, moving in tandem, directionally, with the overall circulating supply of the coin, which has increased 1.11%. This brings the circulating supply to 26.57 billion, which makes up an estimated 53.13% of its max supply of 50.00 billion. According to our data, the current market cap ranking for XLM is #29 at $2.36 billion.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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Cryptocurrency Stellar Decreases More Than 3% Within 24 hours - Benzinga