South Korean President Impeached Amid Reports of Terra's Do Kwon Being in US Custody

Do Kwon Handed Over to US Authorities After Montenegrin Extradition Decision

After a months-long battle over his extradition, Do Kwon, the co-founder of Terraform Labs, has been handed over to United States law enforcement by authorities in Montenegro.

Montenegrin Prime Minister Confirms Kwon’s Custody

On December 31st, Montenegrin Prime Minister Milojko Spajić posted on X (formerly Twitter) that Kwon was in US custody and would face criminal charges related to the collapse of Terra. This announcement came just four days after the Montenegrin Justice Minister Bojan Božović approved the extradition, rejecting a petition from South Korea.

Extradition Decision Rejects South Korean Petition

Despite Kwon holding citizenship in South Korea and facing charges there, the Montenegrin authorities decided to extradite him to the United States. Both the US and South Korea had filed charges against Kwon and several Terraform executives, but his whereabouts were unknown until he was arrested in Montenegro in 2023.

South Korean Court Issues Arrest Warrant for Impeached President Yoon

Meanwhile, on December 31st, the Seoul Western District Court approved an arrest warrant for President Yoon Suk Yeol, who attempted to impose martial law in early December. According to a report by the Korea Herald, this is the first time a sitting South Korean president has faced an arrest warrant granted by a court.

Impeachment and Arrest Warrant

Yoon was impeached and suspended from office after attempting to impose martial law on December 14th. He was replaced by Deputy Prime Minister and Finance Minister Choi Sang-mok as interim president. The impeachment vote came after Yoon failed to report for questioning for the third time, prompting a joint investigative task force to request an arrest warrant.

Pro-Crypto Lawyer Offers to Probe Operation Chokepoint 2.0

On January 4th, pro-crypto lawyer John Deaton offered to lead a probe into Operation Chokepoint 2.0, an alleged initiative aimed at cutting crypto companies out of the traditional banking system. Deaton, who is known for his efforts to support Ripple’s legal battle with the US Securities and Exchange Commission (SEC), said he would "accept the task without salary" if the incoming Trump administration accepts his offer.

Operation Chokepoint 2.0: A Threat to Crypto Industry

Deaton expressed concerns that Operation Chokepoint 2.0 creates a "dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor." His offer to lead a probe follows a court order allowing crypto exchange Coinbase to obtain unredacted files from the Federal Deposit Insurance Corporation (FDIC) to investigate their role in the alleged operation.

China Tightens Crypto Trade Oversight with New Forex Rules

On December 31st, the South China Morning Post reported that the Chinese foreign exchange regulator has introduced new rules requiring banks to monitor and flag risky trades involving crypto assets. These regulations will make it harder for residents to purchase digital assets and use them for cross-border activities.

Impact on Crypto Trade in China

The new rules will also require banks to track the activities based on the identity of institutions and individuals involved, sources of funds, and frequency of trades. This increased oversight is expected to curb underground banks and illegal cross-border financial activities involving crypto assets.

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