🚨 UPDATE: Do Kwon has pleaded guilty in the U.S. to conspiracy to defraud and wire fraud over the $40 billion TerraUSD and Luna collapse, facing up to 25 years in prison. https://t.co/b3tXeekswQ ...

According to Reuters, Terraform Labs co-founder Do Kwon pleaded guilty in the U.S. on Tuesday to two federal charges: conspiracy to defraud and wire fraud. Kwon was behind the development of the cryptocurrencies TerraUSD and Luna, whose collapse led to an estimated $40 billion in losses. If convicted, he could face up to 25 years in prison.https://t.co/ApjoDsXqhA ...

Legal & Regulatory - Terraform Labs' Do Kwon pleads guilty in $40 billion TerraUSD fraud case [1] Financial Crime - The case involves a $40 billion fraud related to TerraUSD [1]

RT BSCN (@BSCNews)DO KWON EXPECTED TO PLEAD GUILTY IN $40B TERRAUSD COLLAPSE CASE- Terraform Labs co-founder Do Kwon is expected to plead guilty Tuesday in Manhattan federal court to U.S. fraud charges over the 2022 TerraUSD collapse that erased $40B in value, court records show.- According to Reuters, Judge Paul Engelmayer scheduled a change-of-plea hearing for 10:30 a.m. EDT and ordered Kwon to detail how he broke the law.- The 33-year-old had pleaded not guilty in January after a yearlong extradition bat ...

COMMENT: Reuters reports that Judge Paul Engelmayer set a change-of-plea hearing for 10:30 a.m. EDT and directed Kwon to explain how he violated the law.BSCN (@BSCNews):DO KWON EXPECTED TO PLEAD GUILTY IN $40B TERRAUSD COLLAPSE CASE- Terraform Labs co-founder Do Kwon is expected to plead guilty Tuesday in Manhattan federal court to U.S. fraud charges over the 2022 TerraUSD collapse that erased $40B in value, court records show.- According to https://t.co/EYF3JKBTEx ...

DO KWON EXPECTED TO PLEAD GUILTY IN $40B TERRAUSD COLLAPSE CASE- Terraform Labs co-founder Do Kwon is expected to plead guilty Tuesday in Manhattan federal court to U.S. fraud charges over the 2022 TerraUSD collapse that erased $40B in value, court records show.- According to Reuters, Judge Paul Engelmayer scheduled a change-of-plea hearing for 10:30 a.m. EDT and ordered Kwon to detail how he broke the law.- The 33-year-old had pleaded not guilty in January after a yearlong extradition battle between the U. ...

According to Bloomberg, Terraform Labs co-founder Do Kwon may plead guilty in a U.S. fraud case over the $40 billion collapse of the TerraUSD stablecoin in 2022. U.S. District Judge Paul Engelmayer has set a change-of-plea hearing for Tuesday and asked Kwon to be ready to explain his conduct. His lawyer did not respond to a request for comment. https://t.co/Xyb95eo7pw ...

Core Viewpoint - Hong Kong's new regulatory framework for stablecoins aims to significantly reduce cross-border payment fees, challenging the dominance of the US dollar in the global financial system [1][8]. Group 1: Regulatory Changes - The Hong Kong Monetary Authority (HKMA) has introduced a new regulatory sandbox that mandates stablecoins to be backed 100% by cash or government bonds, addressing vulnerabilities seen in previous algorithmic stablecoins [5]. - Licensed institutions are required to submit monthly audit reports, and reserve accounts will be monitored continuously, creating a robust safety framework [5]. - The new regulations allow for stablecoins pegged to the Hong Kong dollar, Chinese yuan, or even gold, providing flexibility in the market [5]. Group 2: Market Impact - The new regulations have led to a dramatic reduction in transaction costs, with examples showing a decrease from $6,000 to $600 for cross-border payments, enhancing profit margins for businesses [3]. - Everyday consumers are experiencing benefits, such as a reduction in remittance fees from $25 to $0.5, showcasing the positive impact on personal finances [3]. - Major financial institutions, including BlackRock, are adapting to these changes by tokenizing assets, lowering investment thresholds, and enabling 24/7 trading [3]. Group 3: Global Context - The global landscape for stablecoins is becoming increasingly fragmented, with the US pushing for dollar-backed stablecoins and the EU imposing restrictions on non-euro stablecoins [7]. - Hong Kong's approach contrasts with these strategies by promoting innovation and attracting global players with a lower capital requirement for registration [7]. - Currently, 95% of stablecoins are pegged to the US dollar, indicating the significant challenge Hong Kong's new framework poses to the existing dollar-centric system [8].

Core Viewpoint - South Korea's new president, Lee Jae-myung, is rapidly fulfilling campaign promises by allowing local companies to issue stablecoins through the proposed Digital Asset Basic Law, which opens a legal pathway for stablecoin issuance [1][4]. Group 1: Legislative Developments - The proposed law allows South Korean companies with a capital of 500 million KRW (approximately 368,000 USD) or more to issue stablecoins, provided they establish a reserve guarantee for redemption [1]. - This legislative move comes amid a global surge in interest in stablecoins, with the U.S. Congress preparing to vote on key stablecoin legislation and traditional banks exploring stablecoin issuance [4]. Group 2: Market Dynamics - Over one-third of South Koreans (approximately 18 million) are active in the digital asset market, with trading volumes on local exchanges sometimes exceeding those of the Kospi and Kosdaq indices [4]. - In the first quarter, the trading volume of USDT, USDC, and USDS on South Korea's five major exchanges reached 57 trillion KRW, indicating significant demand for stablecoins [4]. - In the global stablecoin market, USDT holds a 62% market share, USDC accounts for 25%, and other stablecoins make up 13% [4]. Group 3: Challenges and Concerns - The Bank of Korea has expressed strong opposition to the issuance of stablecoins by non-bank entities, warning that it could undermine the effectiveness of monetary policy [5]. - Analysts from JPMorgan have cautioned that the recent surge in KakaoPay Corp.'s stock price lacks fundamental justification, and the specific benefits of Lee's stablecoin policy remain uncertain [6]. - The collapse of TerraUSD in 2022, which resulted in losses of hundreds of billions of dollars, continues to haunt investors and raises concerns about the stability of the market [6].

Group 1 - The core viewpoint is that stablecoins are becoming an integral part of everyday financial transactions, influencing how people spend and save money [1] - Stablecoins facilitate cross-border transactions with lower fees and faster transfer times compared to traditional banking methods, as illustrated by a case where a transfer using USDT cost only $5 and took half an hour, compared to over $200 and three days via bank wire [3] - There are hidden risks in using stablecoins, such as "slippage" during transfers and potential freezing of bank accounts by financial institutions when users frequently transact with stablecoins [3][4] Group 2 - In countries with high inflation like Argentina, stablecoins are used as a means to preserve value, with individuals converting local currency to stablecoins to avoid devaluation [3] - Caution is advised when using stablecoins for savings, as past incidents like the collapse of TerraUSD highlight the risks associated with less established stablecoins [4] - Stablecoins are increasingly being accepted in e-commerce, providing cost advantages, but there are risks of fraud and counterfeit products, as evidenced by a case where a consumer received a fake luxury watch after paying with stablecoins [5] Group 3 - The use of stablecoins for salary payments is emerging, with some companies opting to pay bonuses in stablecoins to avoid taxes, which poses significant risks if the platform fails [5] - Recommendations for safe usage of stablecoins include trading only on compliant platforms, treating stablecoins as tools rather than investment assets, and questioning the necessity of using stablecoins for transactions [6]