The US SEC against South Korea

The US Securities Commission has long been on the warpath with the crypto community. So far, its successes have been mixed with defeats, with more recent losses. However, the SEC finally managed to succeed in the case. The Commission obtained a request from the United States to extradite Do Kwon, ex-cofounder of Terraform Labs.

It really was one of the biggest bankruptcies in 2022, investors lost about $40 billion.

The court agreed with the SEC, which accused Do Kwon of cheating investors.

The case is illustrative: I do not rule out that the investors were deceived. I do not rule out that Do Kwon and the company have abused their trust and worked exclusively for their own interests.

I care about something else. Even if there are reasonable suspicions, why is extradition handled by the SEC? The Do Kwon defense argues that the commission has no authority to demand arrest and extradition. I agree with this position here.

It seems that the SEC is looking for any opportunity to pursue the crypto industry as a whole and individual crypto-businessmen.

It is clear from the processes that have already gone through that the Commission is constantly working to expand its powers. And this is bad.

I think it is a mistake to give the commission the actual investigative functions. This is an obvious duplication of functions. Since the SEC is sharply negative about the crypto industry, nothing good can be expected.

There’s another dimension to this story. South Korea has also demanded the extradition of Do Kwon, and now a strange situation has arisen: for the right to put a crypto-businessman in prison, a real legal battle has begun between the US and South Korea. The United States seems to be winning this strange prize.

The SEC lost to Ripple and Grayscale, but got a chance to put Do Kwon in an American prison. Frankly, an unequal exchange was achieved.

#SECvsSouthKorea #CryptoRegulation #ExtraditionBattle #InvestorProtection #LegalTussle