Montenegro and SEC Discuss Kwon Case; Bybit Insolvency Rumors Quashed; FIT21 Crypto Bill Passes House
Summary:
The Justice Minister of Montenegro and SEC discussed the legal case against Terraform Labs' co-founder Do Kwon. Meanwhile, Bybit's CEO refuted rumors of the platform's insolvency and provided evidence of its liquidity. With opposition from the White House and SEC Chair, the U.S House of Representatives approved the FIT21 crypto bill, which now awaits Senate and presidential approval.
Discussions concerning Do Kwon's legal matters have been held between the Justice Minister of Montenegro and the U.S Securities and Exchange Commission (SEC). Simultaneously, whispers regarding the impending collapse of Bybit were rapidly debunked by the exchange’s CEO, and the U.S House of Representatives has authorized a cryptocurrency legislation that might extend the authority of the commodity regulator to more cryptocurrencies, despite the resistance from both the White House and the SEC Chair.
A conversation about Do Kwon's legal case has been initiated between the Montenegro Government and the U.S SEC. After being detained in the Eastern European nation earlier in March 2023, the Montenegrin government issued a May 22 notice outlining the communication between the justice departments regarding Terraform Labs' co-founder, Do Kwon. In an April verdict, Kwon was deemed guilty of fraudulent activities. While he is currently free to venture within Montenegro, his legal team has issued several appeals to postpone his extradition to either South Korea or United States, which will be decided by the court's ruling.
The staggering failure of Terraform in 2022, one of cryptocurrency's major collapses, initiated a "crypto winter" that led to significant drops in digital asset values within the same year. Ben Zhou, CEO of cryptocurrency platform Bybit, has dismissed rumors about the platform's bankruptcy and offered evidence of its reserves. A flood of online posts and memes on May 22, frequently alluding to Bybit, triggered speculation about the platform's solvency status, leading some users to joke about withdrawing their funds.
In response, Bybit announced the following day that the rumors were baseless. Zhou provided additional assurance by presenting Bybit's proof-of-reserves (PoR) and a dashboard linking all Bybit wallets and their holdings, effectively disproving any hacking or insolvency concerns. PoR indicates that Bybit possesses assets exceeding users' deposits, ensuring uncompromised liquidity for withdrawals.
The FIT21 crypto legislation has secured approval from the U.S House of Representatives and is bound for the Senate. It's uncertain how the bill will fare in the Senate, considering there's no corresponding legislation and anticipated resistance from prominent crypto skeptic, Senator Elizabeth Warren. If it survives committee review, majority approval from the Senate is required for it to pass. Reconciliation efforts might amend some parts of FIT21, requiring final concurrence from Congress before reaching presidential review. Despite apparent opposition from the administration, it remains unclear whether President Biden will veto the bill.
Published At
5/23/2024 10:14:09 PM
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