Do Kwon established a encryption company in Serbia, and prosecutors are investigating whether the company was used for money laundering

On March 24th, the Serbian Technology Criminal Prosecutor’s Office and the United States Federal Prosecutor’s Office disclosed that Do Kwon, the CEO of Terraform Labs, and Shin Hyun-seung, the former CEO of Chai Corporation, who had fled with him, had established a company related to the encryption asset business in Serbia.

Interpretation of this information:

The recent disclosure by the Serbian Technology Criminal Prosecutor’s Office and the United States Federal Prosecutor’s Office that Do Kwon, the CEO of Terraform Labs, and Shin Hyun-seung, the former CEO of Chai Corporation, fled to Serbia to establish a company related to the encryption asset business paints a worrisome picture of the world of cryptocurrency. Do Kwon and Shin Hyun-seung are both known personalities in the crypto world, and their alleged involvement in illicit activities could fuel the negative perception of cryptocurrencies and blockchain technology.

The establishment of a company related to the encryption asset business is not in itself an illegal or illicit act. However, the fact that these two individuals fled the United States and went to Serbia to establish this company raises red flags. The authorities suspect that they did so to evade prosecution and continue their illegal activities in another jurisdiction. The involvement of the criminal prosecutor’s offices of two nations indicates the seriousness of the matter.

The incident highlights the challenges faced by regulators and law enforcement agencies regarding the cryptocurrency industry. Cryptocurrencies operate in a decentralized and borderless environment, making it difficult for regulators to keep track of them. Moreover, the lack of a clear regulatory framework for cryptocurrencies has facilitated their use in illicit activities such as money laundering, terrorism financing, and other criminal activities.

The case also points out the need for the cryptocurrency industry to establish self-regulatory measures. The lack of regulation has been a major concern in the industry, and incidents like this only fuel the need for self-regulation. Self-regulation can establish industry standards for transparency, accountability, and compliance to help mitigate the risks associated with the industry.

In summary, the disclosure of the establishment of a company related to the encryption asset business in Serbia by Do Kwon and Shin Hyun-seung raises concerns about the role of cryptocurrencies in facilitating illicit activities. The incident highlights the challenges faced by regulators and law enforcement agencies regarding the cryptocurrency industry, pointing out the need for self-regulatory measures to mitigate risks associated with the industry.