Terraform Labs' Co-Founder Extradited, Ripple's CEO on ETFs, Circle Halts USDC on Tron
Summary:
Terraform Labs co-founder, Do Kwon, is set to be extradited to the U.S. over fraud charges. Ripple CEO, Brad Garlinghouse, outlined his positive views on potential XRP-centric ETFs. Meanwhile, America-based stablecoin issuer, Circle, has decided to halt the creation of its USD Coin (USDC) on the Tron network with immediate effect, suggesting a phased withdrawal of support for the Tron blockchain.
Co-founder of Terraform Labs, Do Kwon, is set to be sent to the United States where he is charged with fraud. At the same time, the Chief Executive Officer of Ripple weighs in on Exchange Traded Funds (ETFs) and Circle, the entity behind the stablecoin USD Coin (USDC), announces an immediate halt in its creation on the Tron network. Do Kwon is on the verge of being transferred to the U.S. from Montenegro, due to accusations of fraud. Co-founder of Terraform Labs, Kwon has been detained in Montenegro since March 2023. According to media sources, Montenegro's High Court turned down an appeal to send him to South Korea. Kwon's legal representatives had determined that it is up to the Justice Minister of Montenegro to choose the location where Kwon will face charges.
Reports suggest that Do Kwon, hailing from South Korea, will be sent to the U.S. for a fraud trial following a Montenegrin court's order. The U.S. Securities and Exchange Commission has a pending case against Kwon and Terra, with a trial scheduled for March 24. The two parties have been accused of carrying out an extensive "crypto asset securities fraud". Ripple’s CEO stated the company would like to have an exchange-traded fund based on XRP and expects a variety of ETFs based on different tokens to be established. CEO of Ripple, Brad Garlinghouse also made predictions regarding ETFs based on different baskets which are expected to "diversify the risks" for investors. When asked about Ripple's potential discussion with ETF issuers, the CEO preferred to remain silent. However, he pointed out that forming an XRP community made sense for the company.
Garlinghouse believes that having a robust custody service will be a critical factor for making crypto successful, which led to Ripple’s recent acquisition of Standard Custody & Trust. U.S.-based stablecoin issuer Circle has declared its decision to stop the minting of new USD Coin (USDC) on the Tron network right away. Circle stated that it would slowly wind down support for the Tron blockchain, in line with its “commitment to making sure that USDC stays trustworthy, transparent, and secure.” Despite not specifying the reason for withdrawing support for Tron, Circle stated that the decision was taken after considering several functions across its business organization including compliance. This stablecoin issuer said it will keep supporting the transfer of its business clients’ USDC to other blockchains until February 2025. Furthermore, it advised retail customers and others outside Circle to transfer their TRON-based USDC to an exchange where it can be moved over to a network that continues to support USDC.
It is essential to note that this article is purely informational and does not offer any investment advice or recommendations. Each decision regarding investments and trading carries inherent risks and readers should undertake their own comprehensive research when opting for a decision. Contributions to the report made by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
2/21/2024 11:41:14 PM
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