Seoul Court Issues Arrest Warrant for Do Kwon and 5 Others

Do Kwon, the founder of the bankrupt Terraform Labs crypto ecosystem, has been issued an arrest warrant from a court in South Korea.


Do Kwon and five others have allegedly violated the nation’s capital markets law and have been issued a warrant from the court in Seoul, the prosecutor’s office informed Bloomberg.

Kwon and the other five are all located in Singapore, Bloomberg reported citing the prosecutor’s office. However, Kwon is yet to reply to an email sent by Bloomberg seeking comment.

Kwon’s tokens, including Terra (LUNA) and Terra Classic (LUNC), collapsed massively after the arrest warrant was issued. LUNA was trading as low as  $2.4964 at 3:55 PM HKT, down over 35.7%; while LUNC was trading at $0.0002716, down by over 22.3% during the Asia trading section, according to CoinMarketCap.

Terra Classic is home to the algorithmic stablecoin TerraClassicUSD (UST). It’s now-renamed LUNC token collateralized UST, which crashed in a bank run in May.

The fall of the Terra Platform in May led to the historic collapse of the TerraUSD (UST) stablecoins, which has affected the faith of many people in the digital-asset sector. Currently, the crypto sector still remains rattled by the downfall of the stablecoin, and recovery is still under process.

Do Kwon also helped create Luna as part of the Terraform Labs crypto ecosystem, which also lost its value during the fall of the ecosystem.

The ecosystem collapsed when TerraUSD – also known as UST – crumbled from its dollar peg and brought down the ecosystem he had built, after which, the prices of both tokens tumbled to near zero, a shadow of the combined $60 billion they once controlled.

Furthermore, the collapse of Terraform Labs’ associated tokens – LUNA and the UST stablecoin – effectively ushered in the first wave of the crypto winter.

Terra’s unravelling has triggered probes in South Korea and the US, as well as renewed regulatory scrutiny of stablecoins – digital tokens that are pegged to an asset like the dollar.

Currently, the probe into Terraform Labs by South Korean prosecutors is taking a whole new twist as watchdogs are making consultations on how best to classify the collapsed LUNA tokens – now known as Luna Classic (LUNC) – according to a report from Blockchain.News.

As reported by the Korean Herald, the Seoul Southern District Prosecutors Office’s Financial and Securities Crime Joint Investigation Team is consulting with industry stakeholders to determine the best designation for LUNA coins, according to the report.

Following the plummet in prices, companies who had exposure to the assets suffered such financial challenges that many, like Three Arrows Capital (3AC), could not recover from, the report stated.

However, Do Kwon has committed to cooperating with the investigations when the time comes. Bloomberg reported that in an interview with crypto media startup Coinage that floated the prospect of jail time, Kwon said, “Life is long.”

According to a report from a local media platform, the Yonhap news agency, Do Kown was subject to a “Search and Seizure” in July.

The raid was reportedly conducted on the operating office of 15 trading platforms and organisations that have connections to Terraform Labs. While the raid was not projected to last that long, the report had it that prosecutors were very focused on getting as much data as possible to bolster their investigative work on Terraform Labs.

“The amount of data requested by the prosecution was so enormous that it was impossible to complete the search and seizure within one day,” one of the exchange’s officials said, “If the data is insufficient while conducting forensics, it seems that it took time because the prosecution requested to extract more data through a data analyst.”

While the Korean Herald reported that South Korean prosecutors are broadening their investigations into the company. This move has stirred targeted raids on the home premises of Terraform Labs Co-Founder Daniel Shin as well as those of trading platforms that are suspected to have dealings with the now defunct company.

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Canadian PM Justin Trudeau Denounces Cryptos as Escape from Inflation

Canada Prime Minister of Canada, Justin Trudeau, has said that investing in cryptocurrencies to avoid inflation is an act of irresponsible leadership.

Canadian Prime Minister Justin Trudeau expressed concern over the years that he has done everything he can to work with all MPs to create responsible leadership for Canadians and condemn questionable and reckless economic ideas, according to a new tweet on Tuesday. 

He wrote his comment on Twitter:

“Telling people they can opt out of inflation by investing in cryptocurrencies is not responsible leadership. Fighting against life-saving vaccines is not responsible leadership. Opposing the pandemic supports that saved jobs and helped families is not responsible leadership.”

Local media outlet reported that The Bank of Canada, along with others around the world, has been raising interest rates in an effort to cool Canada’s sky-high inflation, which, year-over-year, was 7.6 per cent in July, well above the central bank’s two per cent target.

Canadians are feeling the financial strain as inflation in Canada hits its highest level in nearly 40 years.

In an effort to curb inflation, the Bank of Canada has raised its benchmark interest rate by 1 percentage point to 2.5%. Experts expect the Bank of Canada to continue raising its benchmark interest rate this fall, albeit by a smaller amount, perhaps half a percentage point.

Trudeaus’s move was interpreted as a reply to the official opposition to the incumbent Liberal Party led by Justin Trudeau.

Bitcoin-friendly Pierre Poilievre was elected leader of the Conservative Party of Canada on September 11 with 68.15% of the vote.

Pierre Poilievre has previously promised that if he becomes Prime Minister of Canada, he will negotiate with provincial authorities to “unlock” the potential of cryptocurrencies, helping to unravel the regulatory web that currently governs cryptocurrencies, making Canada a “World Leader in Blockchain“.

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Tagged : / / / / / Enhances Web3 Adoption after Onboarding 40,000 New Users’s ambition to a Web3-driven digital economy gained steam after onboarding 40,000 unique and active users from Get My Slice (GMS), a leading consumer-centred data marketplace.

As a machine learning-based blockchain platform, has been deploying Autonomous Economic Agents (AEA) to automate any industry for enhanced productivity. Therefore, its latest quest for Web3 exploration will be boosted by its decentralized application (Dapp) network.

Per the report:

“Continuing its efforts to rapidly scale its active ecosystem of Dapps and active user-base, Fetch-ai Network has onboarded 40,000 active and unique users from Get My Slice with plans to bring millions more users soon.”

Following a $150 million development fund with crypto exchanges ByBit and MEXC Global, sees Dapps as the key to lowering the barrier to entry of the Web3 world, which renders smarter automation technology and enhanced data privacy.

As a result, the blockchain platform has existing partnerships with Festo and Bosch aimed at onboarding Web2 companies to an interconnected system of Web3 Dapps hosted by the network.

Kamal Ved, the chief product officer at, pointed out:

“We are constantly looking for use cases that leverage the core tenets of Web 3.0 and give all the participants equitable control with fine-grained incentivization avenues.”

The newly onboarded users will be able to utilize the data marketplace for an equitable ecosystem and tokenization purposes. 

Ved added:

“Use cases around data sharing based rewards such as the Get My Slice product offering can benefit using the Fetch-ai Network’s Web 3.0 tech stack of blockchain, agent-based automation and AI to democratize data sharing.”

To facilitate and accelerate secure data sharing, rolled out an end-to-end encrypted file-sharing platform dubbed DabbaFlow, Blockchain.News reported.

Thanks to blockchain technology, DabbaFlow was meant to make data auditable, verifiable, and secure.

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North Island Ventures to Invest $125m in 30 to 40 Emerging Crypto Firms

North Island Ventures said in a statement that it is launching a new $125 million investment fund to execute 30 to 40 early-stage investments in emerging crypto and Web3 companies and protocols.


The crypto-focused investment firm added that initial investments would range from $250,000 and $3 million.

“We launched NIV in 2020 based on our belief that crypto is the next great enabling technology,” said co-founder and managing partner at North Island Ventures Travis Scher. 

North Island Ventures said that NIV Fund II is their second new investment vehicle within the past year. Currently, the company has about $300 million in total assets under management.

“The industry has advanced tremendously since then, but we believe the real potential of this technology has barely been realized,” Scher said.

According to the company’s investment portfolio, companies include bug bounty platform Immunefi, blockchain interoperability protocol Axelar and BCB Group.

“We’ve entered a multichain world, and have a strong thesis that the end-state of crypto is as an invisible, interoperable network-of-networks, where both users and developers don’t have to think about the underlying blockchain their assets and apps live on,” Scher said.

In 2021, North Island launched a $72 million crypto fund. The participants included billionaires Paul Tudor Jones, recording artist and producer LL Cool J and SoFi CEO Anthony Noto, among others.

“NIV Fund II empowers us to continue partnering with extraordinary entrepreneurs aiming to build transcendent businesses,” said co-founder and managing partner James Hutchins.

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Fidelity, Schwab, Citadel Securities Launch New Crypto Exchange EDXM

Financial heavyweights, including Charles Schwab (SCHW), Citadel Securities, and Fidelity Investments, announced a launch of a new cryptocurrency exchange on Tuesday.

As per the report, the trio has collaborated on launching the cryptocurrency exchange called EDX Markets (EDXM).

The exchange is described to be a first-of-its-kind designed with a promise to offer safer, faster, and more efficient cryptocurrency trading. The exchange aims to eliminate expensive bilateral settlements by netting and settling trades through its blockchain network.

The EDXM’s trading platform will rely on the technology built by The Member Exchange (MEMX), a U.S. stock market owned by a group of financial firms, including some of EDX’s creators. This will enable the EDXM to scale its operation to serve retail and institutional investors in several markets.

The exchange will also be backed by ventures, including Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial.

Jamil Nazarali, the former global head of business development at Citadel Securities, is assigned to lead the EDXM exchange, serving as the CEO of the platform.

In a statement, EDX Markets’ board of directors said: “Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.”

New-Found Interest in Crypto

Despite the fall of crypto prices this year, institutional interest in the market has remained high as institutions bring in fresh money and more money than retail can pour in. Established asset managers like Abrdn, Charles Schwab, and BlackRock recently took a hard look, seeking to secure a foothold in the market.

Last month, Abrdn, the U.K. investment group, bought a stake in digital assets exchange Archax. BlackRock opened a private trust offering institutional clients in the U.S. direct exposure to Bitcoin. Schwab also launched a crypto-linked exchange-traded fund (ETF).

Last month, South Korean securities companies (including Mirae Asset Securities and Samsung Securities) reportedly focused on the crypto industry, with plans to set up digital asset exchanges in the first half of 2023.

Early this month, SEBA Bank launched Ethereum staking services, an institutional-grade offering enabling clients to earn staking rewards on Ethereum.

Asset managers have become open to multiple futures of finance. They are increasingly embracing cryptocurrency as a legitimate way of hedging sophisticated investors’ portfolios, like other alternative assets such as Gold.

Some brands have circumvented the usual Bitcoin-first route and ventured into non-fungible tokens (NFTs), ETFs, and the metaverse.

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Bitcoin Mining Difficulty Increases by 3.4%

Bitcoin has witnessed an increase in difficulty mining since August 31, according to data published by


The report showed that Bitcoin’s mining difficulty increased by 3.4%, which is a decrease from the previous jump of 9.26% on August 31. However, it is the fourth positive adjustment in a row.

The data also showed that Bitcoin mining difficulty on August 18 was at 0.63%. 

While Bitcoin mining difficulty on July 22 was at negative (-) 5.01%, according to tracks network mining difficulty. It also posts an update as adjustments take place roughly every two weeks.

According to The Block, the significant fall in mining difficulty earlier this summer was due to Bitcoin miners turning off their machines in response to conservation demands during peak power demand due to extreme heat.

The intricacy of the process behind mining defines mining difficulty. During mining, miners are frequently trying to find a hash below a set level. 

Miners that “discover” this hash win the reward for the next transaction block, and the difficulty adjusts every 2,016 blocks (roughly every two weeks) in sync with the network’s hash rate.

Regardless of the increase in mining difficulty, many bitcoin mining firms in the private sector have expanded their crypto business.

CleanSpark in August expanded its crypto mining business to take advantage of opportunities that have emerged in the ongoing bear market.

According to a report from Blockchain.News, CleanSpark disclosed that it entered into a definitive agreement with Waha Technologies, a low-carbon Bitcoin miner, to acquire a Bitcoin mining site (owned by Waha), which includes the mining facility and machines.

The US Bitcoin mining company also acquired an active Bitcoin mining facility located in Washington, Georgia, for $16.2 million along with around 3,400 of the latest generation Antminer S19 series of machines for approximately $8.9 million from Waha Technologies.

However, along with mining difficulty, cryptocurrency mining firms have several fixed costs, such as power, real estate, and rigs that help in the actual mining of cryptos, which in turn is the reason why it can be tough for their margins when the market significantly drops the value of funds they were holding in crypto like Bitcoin. 

According to a report from Blcockchain.News, many publicly listed Bitcoin mining firms collectively sold more Bitcoin in June than they mined in May as the value of Bitcoin tumbled 45%. Also, in June, Bitfarms sold 1,500 Bitcoins for around $62 million and used the proceeds from the sale to reduce its debt.

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Ontario Teachers Pension Floats with FTX Trading amid Crypto Volatility

Ontario Teachers Pension Plan (OTPP), Canada’s major professional pension fund plan company, has disclosed that its bet on FTX trading carries the lowest risk in the entire crypto asset class, Reuters reported Tuesday.

The pension fund firm further said its investment in the FTX crypto trading platform has grown well in uncertain times.

Ontario Teachers Pension Plan comments came after another Canadian pension fund company called “Caisse de Depot et Placement du Quebec” announced in August that it was writing off its entire $150 million investment in crypto lending platform Celsius Network after the lender filed for bankruptcy this year.

Ontario Teachers Pension Plan, Canada’s third-largest pension fund, oversees $227.7 billion in net assets. Last October, the pension fund ventured into the crypto business with an investment in crypto exchange FTX Trading Ltd’s $420 million funding round.

Jo Taylor, the CEO at Ontario Teachers Pension Plan, told Reuters previously: “In terms of the risk profile, it is probably the lowest risk profile you can have in that it’s everybody else is trading on your platform.

He further said the business is performing well, though he declined to comment on the size of OTPP’s investment or the equity stake.

Taylor said the investment in FTX Trading is part of its strategy to learn about the crypto business and whether it gives the right balance of risks and returns.

Betting on Crypto Despite Market Downturn

Cryptocurrencies have been under extreme pressure this year, with the price of Bitcoin crashing by more than half, dragging down other digital assets.

Despite the downturn, some large institutional investors have continued to bet on this asset class. Well-known Capital managers are still finding new ways to monetise investor interest even as trading volumes and prices for Bitcoin and other cryptos have slumped.

Early last month, a $6.8 billion Virginia pension fund company, the Fairfax County Retirement Systems, announced plans to boost its returns by investing in crypto lending markets despite a crisis in the crypto industry.

Early last month, Abrdn plc, a UK-based global investment company, entered into crypto investments by buying a stake in a regulated UK digital asset exchange Archax.

Archax provides a platform for institutional investors to trade cryptocurrencies and tokenised securities such as fractions of shares in companies. Over time, Abrdn hopes to reap “huge revenue” by giving clients access to its funds in tokenised form as well as assets that are less easily tradeable, like private debt, private equity and buildings, on its platform.

Abrdn’s investment came as BlackRock, last month, launched a spot Bitcoin trust for institutional investors through a partnership with Coinbase crypto exchange.

Last month also, Charles Schwab, the US broker and investments group, launched an exchange-traded fund (EFT) to expose investors to crypto without actually buying the currencies.

The Schwab ETF invests in listed companies that aim to profit from offering services to crypto investors or from the underlying blockchain technology.

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Korean Prosecutors Consulting if LUNA Classified “Security”

The probe into Terraform Labs by South Korean prosecutors is taking a whole new twist as watchdogs are making consultations on how best to classify the collapsed LUNA tokens – now known as Luna Classic (LUNC).

South Korea.jpg

As reported by the Korean Herald, the Seoul Southern District Prosecutors Office’s Financial and Securities Crime Joint Investigation Team is consulting with industry stakeholders to determine the best designation for LUNA coins. Should the consultation lead to the recognition of the coin as a security, it will complicate the ongoing case for Terraform Labs as it will now also be violating the Capital Markets Act.

The collapse of Terraform Labs’ associated tokens, including LUNA and the algorithmic TerraUSD (UST) stablecoin back in May effectively ushered in the first wave of the crypto winter. With the plummeted prices, companies who had exposure to the assets suffered such financial challenges that many, like Three Arrows Capital (3AC), could not recover from.

Besides corporate startups who went bankrupt on exposure to the LUNA tokens, retail investors also suffered a tremendous amount of loss. In Korea alone, as many as 270,000 investors had exposure to LUNA and UST, with most ending in losses at this time.

According to the Korean Herald, South Korean prosecutors are broadening their investigations into the company. This move has stirred targeted raids on the home premises of Terraform Labs Co-Founder Daniel Shin as well as those of trading platforms that are suspected to have dealings with the now defunct company.

With more details still required by the prosecutors, there is no doubt that Do Kwon and Terraform Labs will face some reprimand. For now, however, Kwon’s whereabouts seem to be staling the process, but the prosecutors have issued a standing that will alert them once Do Kwon sets his feet on Korean shores.

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US Inflation Data Lashing Crypto Market

The United States Bureau of Labor Statistics (BLS) released its inflation data for August, with the Consumer Price Index (CPI) coming in at 8.3% year-on-year (YoY). The market is concerned about rising inflation.


According to the released data, the BLS states that:

“In August, the Consumer Price Index for All Urban Consumers increased 0.1%, seasonally adjusted, and rose 8.3% over the last 12 months, not seasonally adjusted. The index for all items less food and energy increased 0.6% in August (SA); up 6.3% over the year.”

While we can say the inflation was reduced when compared to July, whose CPI reading was 8.5%, it is still well above the maximum target of 4%, which the Federal Reserve is targeting. The implication of these will be far-reaching, as the Feds may use this inflation data as the perfect basis to increase interest rates when the Federal Open Market Committee (FOMC) meets later this month.

That inflation is still sky high is bearish news for the stock and cryptocurrency market, both of which have started responding since the inflation data was released.

Bearish Crypto Response

As expected, investors have started removing money from the cryptocurrency ecosystem, with the combined digital currency market cap slipping below the $1 trillion benchmarks to $993.03 billion, down 7.12% at the time of writing.

The fall is being fueled by the broad-based slump in the price of Bitcoin (BTC), which shed 9.73% over the past 24 hours to $20,212.02, per data from CoinMarketCap. Ethereum (ETH) investors are also not focusing on the upcoming merge of its Beacon Chain with the mainnet as the inflation data overwhelms investor sentiment.

The second-largest cryptocurrency was down 7.67% to $1,591.34, dampening the proposed outlook of the coin as the merge approaches.

The Feds Chairman Jerome Powell has reiterated the readiness to continue hiking interest rates until the 2% target is reached. While this is a seemingly arduous task, making good on its promise can tilt the economy into recession, at which time the Feds will start injecting more money into the market to prop it up.

With more money in circulation at the time, the attractiveness of fiat will be reduced, and crypto may re-establish its lustre as a viable store of value by then.

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Crypto Firm BitGo Files $100m Lawsuit against Galaxy Digital for Breaching Acquisition Deal

BitGo has filed a lawsuit against crypto financial services firm Galaxy Digital.

The California-based institutional digital asset financial services company is seeking more than $100 million in damages as it claims that Galaxy Digital intentionally breached the companies’ proposed $1.2 billion merger agreement announced in May last year.

On May 5 2021, Galaxy announced plans to acquire custodian provider BitGo for $1.2 billion in cash and stock.

However, last month on August 15, Galaxy terminated its deal to acquire BitGo, something that did not go with the other party. BitGo immediately responded, saying it would seek $100 million in damages following the termination of its merger with Galaxy Digital.

In a tweet yesterday, BitGo announced: “Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.”

The crypto custody firm further said that the complaint was filed in Delaware Chancery Court and will be made available to the public on Thursday, September 15.

In a statement, BitGo disclosed its intention to sue Galaxy, describing the termination of the deal as “absurd.”

What Caused the Failed Merger Deal?

On August 15, Galaxy Digital announced that the firm terminated a proposed $1.2 billion stock and cash deal that would allow the crypto company to acquire the digital asset custody business and financial services provider BitGo. Galaxy detailed that the abandoned deal was due to BitGo’s “failure to deliver” specific financial documents.

Galaxy said it exercised its right to terminate its previously announced acquisition deal with BitGo, following BitGo’s failure to deliver by July 31 audited financial statements for 2021 that comply with the requirements of the proposed agreement. Galaxy further stated: “No termination fee is payable in connection with the termination.”

The news of the failed merger came only a week after Galaxy reported a second-quarter net loss of $554.7 million following a plunge in the value of cryptocurrencies.

The financial losses followed Galaxy’s exposure to the collapse of TerraUSD algorithmic stablecoin in mid-May.

The collapse of the Terra blockchain ecosystem hit confidence in cryptocurrencies. Several crypto lending firms such as Celsius Networks, Voyager Digital, Vauld, Zipmex, Babel Finance, among others, were forced to stop customer withdrawals, and many became bankrupt.

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Bitcoin (BTC) $ 40,598.88 7.35%
Ethereum (ETH) $ 2,174.03 7.71%
Litecoin (LTC) $ 71.29 8.13%
Bitcoin Cash (BCH) $ 227.14 9.28%