Do Kwon, co-founder of the blockchain-powered Terraform Labs, faces an extended period of detainment after reported fake documentation usage at Podgorica airport in Montenegro. A legal representative of Kwon confirmed the appeal against the Montenegrin court decision made after prosecutors raised concerns of possible escape, due to his lack of clear identity and foreign nationality.

The arrest came only a few hours after the U.S. prosecutors in New York charged Do Kwon with eight counts, among them commodities fraud, securities fraud, wire fraud and others, related to market manipulation, following the crash of the Terra Ecosystem.

The alleged wrongdoing, which attracted the attention of the SEC, reportedly caused Luna, the native cryptocurrency of the Terra Network, to fall by 8.2% in a matter of a few hours. A few days ago, the Federal Securities Commission made Crypto Exchange Coinbase a target of a formal inquiry to ask information related to the company’s operations.

This week wasn’t limited to news involving Kwon and Coinbase. Cryptocurrency Exchange FTX sold $95 million of shares in the Mysten Labs - a blockchain-based virtual reality platform - during the week.

In general, this week highlighted the pitfalls and opportunities of the cryptocurrency space. Do Kwon's prosecution, while illustrating the state's intolerance to alleged wrong-doing in the cryptocurrency industry, offers a cautionary tale of the legality of one’s actions when involving cryptocurrencies. Coinbase's investigation by the SEC provides insight into the governing agencies view of potential risks and rewards in the cryptocurrency realm. Finally, Mysten's impressive $95 million in sales by FTX is yet another example of the potential profitability of cryptocurrency dealings. All suggest not only the immense possibilities within the industry, but also the need for caution, regulation, and strict adherence to the laws.



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