Binance, one of the world's leading cryptocurrency exchanges, is under pressure to comply with South Korean prosecutors' demands to freeze assets of Terra Luna's founder, Do Kwon, who is detained in Montenegro for passport fraud. MyChargeBack, a New York-based analytics firm, has recommended that Binance cooperate with the investigators in order to avoid any trouble. Kwon, who stands accused of converting assets on Binance into Bitcoin, is believed to possess billions of dollars worth of currency. Kwon is also facing charges from the South Korean government for violating the country's capital markets law and from the U.S. Securities and Exchange Commission (SEC) for committing eight counts of fraud. Meanwhile, the CEO of Binance - Changpeng Zhao, is himself on the hot seat with the Commodity Futures Trading Commission (CFTC) for allegedly coaching U.S. market makers to bypass geographical restrictions set by the exchange.

The Terra Luna incident of last year that resulted in the loss of billions of dollars has highlighted the need for authorities to quickly enact proper regulations in order to deter crooked individuals from taking advantage of unsuspecting investors. MyChargeBack's Evan Spicer speculated that Kwon will most likely attempt to flee to Africa or Dubai in order to escape extradition and has warned Binance to carefully observe the proceedings of the case. Binance's cooperation with South Korea has become mandatory as it does not want to sour its ties with any country, especially one that is closely related to the U.S.

At this point, it seems to be a waiting game and we will have to wait and see if Binance's stance on Kwon's case will be enough to satisfy South Korean authorities and the SEC. We can also hope that the necessary regulations are put in place soon to ensure that investors do not get scammed due to a lack of oversight when it comes to the cryptocurrency market.



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