A South Korean team of financial investigators issued a request for "notification upon arrival" and "departure ban" to both former TerraForm Labs chief Do Kwon and current executives, including Daniel Shin, and the country's Ministry of Justice granted prosecutors' requests to further investigate the fraud allegations. against TerraForm Labs and its executives. The documents requested and received by the investigators will help them to continue their investigation into fraud and money laundering charges against Do Kwon once he returns from Singapore. By the way, in addition, Kwon is already accused of continuing to distribute Terra (LUNA) tokens without informing investors about his investment risks. And the businessman is also required to attend court proceedings on lawsuits filed against him by Terra investors. Meantime, Shin has distanced himself from both Kwon and the Terra project, as well as promoting his Chai app. Last week, the investigation team ransacked Sheen's home and office and seized transaction records and documents related to TerraForm Labs. A similar search took place in another 15 crypto companies, among which are Upbit, Bithumb, Coinone, Korbit and Gopax crypto exchanges. Leading US law firms Scott+Scott Attorneys at Law LLP, The Rosen Law Firm and Bragar Eagel & Squire have filed three class action lawsuits against TerraForm Labs, Kwon and affiliates. Terra insider "FatMan" joins these lawsuits. The plaintiffs' group is also preparing another class action against Kwon for defrauding thousands of investors. It seems that the next few years for a young Korean businessman will not be the most prosperous.
Cryptocurrency exchange Kraken has been embroiled in a nasty case over allegations that the exchange continued to provide access to crypto transactions for Iranian citizens, which is considered a violation of US sanctions. According to information from the NY Times, the crypto exchange is now under investigation for violating sanctions. The Department of Treasury's Office of Foreign Assets Control has been investigating Kraken since 2019 and is actively mulling a fine. At least that's what the NY Times was told by anonymous people familiar with the matter but who wished to remain behind the scenes. By the way, this is not about some new sanctions, but about the OFAC package, which came into force in 1979. They restrict the export of goods and services from Iranian citizens or organizations, and also work in reverse. By the way, when asked about sanctions violations, Kraken's Marco Suntory said he would not comment on specific discussions with regulators. Founded in 2011 by Jesse Powell, the Kraken crypto exchange has been under scrutiny from regulators since 2009, when a lawsuit was filed against the exchange by former employee Nathan Peter Runyon. And the most interesting thing is that the essence of his lawsuit was precisely the accusation of Kraken in receiving income from sub-sanctioned countries. Tse OK vzhe bulo!
According to the International Monetary Fund (IMF), the turmoil in the digital asset market has not seriously damaged the stability of the global financial system. The global economy, already weakened by the epidemic, has been undermined, according to the IMF, by higher-than-expected global inflation, a worse-than-expected recession in China, and the additional negative impact of the Russian invasion of Ukraine. Cryptocurrency assets have “seen a significant selloff,” which has led to losses for crypto investment vehicles, the failure of algorithmic stablecoins and crypto hedge funds. However, there have been only a few spillovers in the more ramified financial system lately, and the crypto crisis is not the cause. Moreover, back in June, the head of the US Federal Reserve, Jerome Powell, said that the institution “not seeing major macroeconomic repercussions so far” of volatility in the cryptocurrency market. During his speech before the Senate Banking Committee, Powell noted that the central bank is closely monitoring changes in the cryptocurrency sector and that “a better regulatory framework is needed.” For what?