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Media Coverage11 months into the 'Luna·Terra Coin' investigation, still shrouded in uncertainty.
While Do Kwon (32), the CEO of Terraform Labs and a key figure in the Terra-Luna coin crisis, has been arrested, the investigation into domestic accomplices has not progressed quickly. With the uncertainty surrounding Do Kwon's extradition to South Korea, arrest warrants for the accomplices requested by the prosecution have been repeatedly dismissed by the court. In the meantime, the prosecution has frozen assets related to the case, worth approximately 230 billion KRW, as part of their effort to seize criminal proceeds, and they are continuing supplementary investigations. (omitted) There has yet to be a domestic precedent that recognizes virtual assets as securities. As a result, some victims are demanding that 'Do Kwon be sent to the United States instead.' However, the prosecution argues that prosecuting Do Kwon in South Korea, where his accomplice Shin is located, would increase the likelihood of a conviction and be more favorable for victim compensation. Pureun “Ian” Hong, a lawyer at Decent Law Firm, stated, "While there is no precedent in South Korea, the difference in how the U.S. and South Korea approach the issue of securities is not that significant." A representative from the Ministry of Justice also commented, "We are comprehensively working to ensure that the Montenegrin judicial authorities decide to extradite Do Kwon to South Korea."
2023-04-04 KUKMINILBO -
Media Coverage
'Impending Ruling' in SEC vs. Ripple Case, Experts Warn of Investment Risks.
As the ruling on the ‘SEC vs. Ripple lawsuit,’ which is expected to be a crucial indicator in determining the security nature of the virtual asset market, approaches, opinions on the outcome remain divided. Investors are betting on Ripple's victory, causing Ripple's price to rise, but experts are warning of investment risks, stating that the lawsuit's outcome is difficult to predict. (omitted) Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, commented, "If we look at the written arguments submitted with reference to the Voyager bankruptcy ruling, Ripple's arguments hold merit, but that doesn't mean the SEC's stance is weak either,' adding, 'It still seems likely that the case will end in a settlement."
2023-04-01 etoday -
Media Coverage
FIU, controversy over lenient punishment for virtual asset service providers.
The Financial Intelligence Unit (FIU)'s penalties for virtual asset service providers have sparked controversy over leniency. Despite numerous issues, such as only investigating 1.4% of suspicious transaction reports due to the same person review history and failing to address 011 and 017 numbers, investors are criticizing the light penalties imposed on exchanges, including the number of violations and fines. (omitted) Pureun “Ian” Hong, managing partner at Decent Law Firm, commented, "The penalties imposed after the recent disciplinary committee review — including a fine of 492 million KRW, reprimands, and warnings — can hardly be considered a strong response. However, the Financial Services Commission seems to have focused on encouraging improvement by the businesses, while also warning of stricter penalties for similar issues in the future." He further added, "From an investor's perspective, it is difficult to know which exchange violated anti-money laundering obligations. Some serious offenses, such as exchange employees trading virtual assets under family members' names, were not disclosed, leaving investors without full access to important information. In the future, it would be more desirable for more information to be disclosed in cases of such legal violations, providing investors with better standards when choosing an exchange."
2023-03-31 NBN NEWS -
Media Coverage
CFTC vs SEC: A power struggle over whether it's a commodity or a security.
On the 27th (local time), the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ) for violating the Commodity Exchange Act (CEA), among other charges. (omitted) Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, commented, "Regulations on securities are more complex and stringent than those on commodities. As of 2022, the SEC employed 4,807 people, compared to the CFTC’s 677, which highlights a significant difference in manpower. The industry is likely to perceive this as a difference in the intensity of oversight and regulation." He further added, "In South Korea, both commodities and securities fall under the jurisdiction of the Financial Services Commission (FSC), so the difference may not be as pronounced. However, there is a clear regulatory disparity between securities, which require the submission of a securities registration statement to the FSC, and derivatives, where basic information necessary for trading must be disclosed by the listing exchange."
2023-03-31 hankyung -
Media Coverage
Do Kwon at the crossroads of extradition to South Korea or the U.S.; what about compensation for domestic victims?
With the arrest of Do Kwon (32), CEO of Terraform Labs and the main culprit behind the collapse of the Luna and Terra cryptocurrencies, both South Korea and the United States are competing for his extradition. The decision by Montenegrin judicial authorities is drawing attention, as the possibility of compensation for South Korean victims depends on which country Do Kwon is extradited to. (omitted) Attorney Pureun “Ian” Hong of Decent Law Firm, who specializes in cryptocurrency fraud, stated, "If the investigation or trial is led by South Korea, hidden funds could be uncovered, and the court may allocate them to domestic victims. If Do Kwon is brought to South Korea, the prosecution will likely take measures to preserve any criminal proceeds he has hidden. Once a final judgment is issued, the funds will be distributed to the victims, providing relief." Hong added, "There is a possibility that Do Kwon could stand trial in the U.S. and then be extradited back to South Korea. However, the fact that the U.S. has also requested his extradition shows their intent to punish him. If he is prosecuted in the U.S. and then sent to South Korea, it may be too late. On the other hand, if he is extradited to South Korea first, it would make it more difficult to provide relief for U.S. victims."
2023-03-30 biz.chosun -
Media Coverage
Attention focused on the 'securities nature' of Terra-Luna coins.
With the arrest of Do Kwon, CEO of Terraform Labs and the main culprit behind the 'Terra-Luna' crisis, which wiped out 52 trillion won in market capitalization, attention is now focused on whether he will be extradited to South Korea and what punishment he may face. While the timing and possibility of his extradition to South Korea are being closely watched, the assessment of whether Terra-Luna coins qualify as securities is expected to be a key factor. (omitted) Hyeonsu “Elliot” Jin, managing partner at Decent Law Firm, stated, "If both countries request extradition, the Montenegrin government will decide based on their judgment where he will be sent. Since Do Kwon holds South Korean nationality, it is more likely that he will be extradited to South Korea rather than the United States." Jin also added, "If Do Kwon is extradited to South Korea and stands trial, regardless of the punishment he faces, it could mark the starting point for determining whether virtual assets qualify as securities."
2023-03-24 etoday
