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South Korean court issues arrest warrant for Terra co-founder and CEO Do Kwon

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arrest of Terra co-founder and CEO

According to media reports, a South Korean court issued a warrant for the arrest of Terra co-founder and CEO Do Kwon and five other representatives of the company, including Terraform Labs co-founder Nicholas Platyas and company employee Han Mo. Allegedly, regulators accused the entrepreneur and his team of violating capital market rules.

According to South Korean media, Do Kwon may be in Singapore. Local publications also drew attention to the fact that the warrant is valid for one year. The South Korean prosecutor’s office is hoping for Interpol’s help in catching Do Kwon and other representatives of the crypto project.

Recall that in early May 2022, Terra cryptoproject Terraform Labs’ stablecoin, TerraUSD, detached itself from its underlying asset, the U.S. dollar. The cryptocurrency went down, dragging down the platform’s native token, LUNA.

As of early May, both Terra USD and LUNA coins were in the top 10 of the digital asset market capitalization. Amid the collapse of the Terra ecosystem, investors lost about $40 billion. The project’s collapse set off a “death spiral” in the digital asset market.

The developers tried to remedy the situation by launching a second version of LUNA and distributing new coins to affected users. The airdrop proved unsuccessful. Many users complained that the volume of received tokens did not cover their losses. The situation was exacerbated by the release of LUNA 2.0 in the fall immediately after its release.

In September 2022, the developers launched another series of token giveaways. The airdrop will run through October 4.

In late June 2022, South Korean authorities banned Terra developers from leaving the country. A month later, the Korean Ministry of Justice approved a request from the Seoul Prosecutor’s Office to restrict Terra LUNA CEO Do Kwon’s movement if he ended up in the country. Amid regulatory pressure, the developer hired lawyers.

Do Kwon, despite the revelations online about his previous failed projects, denies any accusations of scamming.

We previously reported on what’s happening with Terra Luna three months after the collapse.

Cryptocurrency

Cryptocurrencies have overtaken traditional assets regarding profits. How to take profits from cryptocurrency? 

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how to take profits from cryptocurrency

Investments in cryptocurrencies in the third quarter paid off many times more than in precious metals or U.S. indices. Kaiko analysts report this in their newsletter. How to take profits from cryptocurrency? 

Despite the strong volatility, most of the cryptocurrency market surpassed other traditional assets in the III quarter, although in the II quarter, the market had double-digit losses. However, analysts point out that the growth of individual items on the list was solely due to some altcoins.

For example, the DeFi token basket (which includes altcoins MKR, IDO, AAVE, COMP, CVX) grew 60% thanks to the LDO token, which jumped from $0.6 to $3 during the quarter. How to lock in profits cryptocurrency? 

The cryptocurrency ether (ETH), despite a sharp pullback after the Ethereum update, also managed to close Q3 with a growth of more than 20%. Bitcoin (BTC), on the other hand, closed the quarter with a slight decline due to falling global risk sentiment, Kaiko said. The only successful asset in both Q2 and Q3 was the U.S. dollar index (DYX). Demand for saving assets fueled the index’s performance in both quarters.

The RSI indicator on the monthly chart for bitcoin promises a market bottom soon. Wave analysis promises another declining low and only then a reversal. The current price dynamics are very similar to the situation in 2015, as the price bounced both times from the candles of the previous historical high.

The current period is the shortest, so even if bitcoin were to reverse, the RSI would probably take more than one month to recover again. Also, in 2015 and 2019, the RSI fumbled for a bottom in 62 days and 91 days, respectively. The current RSI bottom was reached after 61 days.

Previously, we reported that the bear market in the cryptocurrency and financial world continues

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The U.S. Treasury Department considers cryptocurrency a threat to central banks and the financial system

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cryptocurrency threat to national security

The formation of cryptocurrency rates, mainly due to market speculation, which may threaten the financial stability of the U.S. economy. This is the opinion of the U.S. Treasury Department; The Hill found out. Therefore, cryptocurrency threatens central banks. 

According to the Ministry, the cryptocurrency market will pose a threat to the U.S. economy and a cryptocurrency threat to national security. If cryptocurrency increases its interaction with the traditional financial system, it could end badly. The ministry has prepared a report for U.S. lawmakers, which called for increased oversight of the market. At the same time, the U.S. Treasury admits that so far the cryptocurrency market’s connection to the traditional financial system is “relatively limited.”

In August, the U.S. introduced a bipartisan bill to regulate the cryptocurrency market. According to its details, U.S. cryptocurrency traders are required to register with the Commodity Futures Trading Commission (CFTC).

The bill requires cryptocurrency exchanges to cross out or disclose conflicts of interest, maintain a reserve balance, and have a proper customer data protection program. For now, however, U.S. lawmakers are concerned about the U.S. House of Representatives elections, which will be held on November 8, 2022. Until then, U.S. authorities are unlikely to take concrete steps on the crypto market.

The White House is pushing for Congress to speed up the issue of cryptocurrency oversight. The U.S. Financial Stability Oversight Council urged policymakers to come to an agreement on the issue of cryptocurrency market regulation as soon as possible. The council suggests forming an interagency collaboration to close existing loopholes that allow shadowy crypto businesses to flourish. 

Earlier we reported about what happened in the world of cryptocurrencies on October 4

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Mastercard will start fighting cryptocurrency fraud. Mastercard accepts cryptocurrency is out of the question so far

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International payment system Mastercard has developed a new system that will help banks identify and block “dirty” transactions. CNBC wrote about it referring to the company. Soon we’ll see the Mastercard cryptocurrency card. 

The system, dubbed Crypto Secure, uses “sophisticated” artificial intelligence algorithms to determine risk on cryptocurrency exchanges. The system relies on data from the blockchain, publicly available transaction records, and other sources, the publication writes. There is a possibility that this is a preparation before the event when Mastercard will start accepting cryptocurrency. 

The development is supported by analytics firm CipherTrace, which Mastercard absorbed in 2021. With Mastercard’s solution, financial institutions and credit card issuers will be able to assess the risks of contact with a cryptocurrency business. CNBC notes that Mastercard has long used similar technology to prevent fraud in transactions with traditional money.

Earlier, Chainalysis analysts found that the volume of fraudulent schemes in the cryptocurrency market has decreased by 15% since the beginning of 2022. Compared to July 2021, fraud proceeds decreased by 65% to $1.6 billion. According to Chainalysis, the drop in proceeds can be attributed to the overall decline in the cryptocurrency market.

The only area of the crypto market where activity is growing are hacks and hacking attacks. Attackers stole $1.9 billion in July 2022 alone, compared to $1.2 billion in July 2021. According to Chainalysis, such high amounts of revenue from hacking attacks are due to the vulnerability of many decentralized finance (DeFi) applications to new attack vectors.

According to research firm Elliptic, attackers are also using cross-chain bridges to launder money. Experts found that criminals have laundered at least $540 million through the RenBridge cross-chain bridge since the beginning of 2020.

We previously reported that WazirX has cut almost half of its staff

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