This week has been marked by significant developments and strategic partnerships within the cryptocurrency landscape. The most noteworthy event was the Montenegro Appellate Court’s ruling to extradite Do Kwon to South Korea instead of the United States. Additionally, Trust Wallet announced a new collaboration with The Open Network (TON) aimed at improving blockchain transaction efficiency. Furthermore, GnosisDAO introduced Gnosis AI, a project designed to integrate AI technology into Web3 for enhanced prediction market capabilities. In a separate legal matter, the SEC charged BitClout founder Nader Al-Naji with multi-million-dollar fraud, signaling ongoing regulatory scrutiny in the industry. Lastly, Ondo Finance launched USDY on the Aptos blockchain, introducing a new tokenized U.S. Treasury asset and bridging traditional finance with decentralized finance (DeFi).
### Montenegro Court Rules Do Kwon to Be Extradited to South Korea
In a landmark decision for the crypto sector, Montenegro’s Appellate Court ruled that Do Kwon, co-founder of Terraform Labs, will be extradited to South Korea rather than the U.S. This ruling resolves a legal dispute concerning where Kwon should answer to charges linked to the collapse of his cryptocurrency venture. Facing negligence claims related to the staggering $60 billion downfall of TerraUSD and Luna tokens, Kwon will now stand trial in South Korea. He became a fugitive after a 2022 arrest warrant was issued in his home country, prompting international efforts for his capture. The U.S. has also charged him with cryptocurrency fraud, seeking $4.47 billion in restitution and penalties.
The court’s decision aligns with Montenegro’s legal framework, favoring the extradition request from South Korea over that from the U.S. Kwon had previously been detained in Montenegro in April 2023 while attempting to evade deportation using a forged passport. This ruling underscores the heightened scrutiny of cryptocurrency practices and the critical role of international legal cooperation in tackling financial crimes.
### Trust Wallet Partners with TON to Enhance Crypto Transactions
This week, Trust Wallet forged a partnership with The Open Network (TON) to integrate its services with TON’s platform, aiming to foster greater blockchain adoption. This collaboration focuses on streamlining transactions using Toncoin (TON), the native cryptocurrency of TON, directly through Trust Wallet.
The partnership aims to enhance the user experience by simplifying transactions and expanding access to TON’s ecosystem. It will facilitate both single-chain and cross-chain swaps and may eventually incorporate TON NFTs. Users will soon be able to import TonKeeper wallets into Trust Wallet, and future updates will integrate TON Connect and various TON DApps, enriching the overall user experience and broadening the capabilities of Trust Wallet.
### GnosisDAO Launches Gnosis AI to Merge Web3 and AI
GnosisDAO has unveiled Gnosis AI, a new initiative under Gnosis Labs, with the goal of combining Web3 technology and artificial intelligence. This initiative, announced via their social media channels, is focused on integrating AI agents into prediction markets—a field in which GnosisDAO holds significant expertise. Gnosis AI aims to leverage AI agents to enhance the accuracy and efficiency of forecasting and decision-making within these markets.
The platform seeks to refine these trading agents to align with its vision of becoming a “truth teller,” with the leading agents currently achieving approximately 65% accuracy. One notable AI agent, dubbed the “Social Agent,” will analyze client bets to improve public relations and market insights.
### SEC Charges BitClout Founder Nader Al-Naji with Multi-Million Dollar Fraud
The SEC has charged Nader Al-Naji, the founder of BitClout, with engaging in multi-million-dollar fraud. Al-Naji is accused of misleading investors regarding BitClout’s native token (BTCLT) and misappropriating over $7 million for personal expenses. According to the SEC, Al-Naji raised more than $257 million through unregistered sales of $BTCLT tokens starting in November 2020, allegedly using the funds for extravagant personal purchases, including a mansion in Beverly Hills and cash gifts.
The SEC also claims that Al-Naji attempted to circumvent regulatory oversight by presenting BitClout as a decentralized project, despite contrary evidence. This included obtaining a misleading legal opinion that misrepresented the project’s status. Al-Naji faces civil charges for breaching securities laws, and the U.S. Attorney’s Office for the Southern District of New York has filed criminal charges against him as well.
### USDY Makes Debut on Aptos, Revolutionizing DeFi with Tokenized Treasury Assets
Ondo Finance has launched USDY on the Aptos blockchain, marking the arrival of the first tokenized U.S. Treasury asset within the Aptos ecosystem. This initiative integrates the stability of traditional finance with the innovative potential of decentralized finance (DeFi). USDY offers a 5.3% APY yield while ensuring institutional-grade security backed by U.S. Treasuries. The introduction of this new stablecoin enriches options within Aptos’s DeFi landscape and extends its advantages to global investors.
The launch of USDY enhances the DeFi environment on Aptos by integrating with major protocols managing over $250 million in total value locked (TVL). It is expected to improve liquidity pools, serve as collateral, and support financial instruments such as Collateralized Debt Positions (CDPs) and derivatives. Both Nathan Allman from Ondo Finance and Jerome Ong from the Aptos Foundation commended this significant launch.
### Conclusion
In conclusion, this week has been transformative for the cryptocurrency sector, showcasing vital legal, regulatory, and technological advancements. The extradition of Do Kwon to South Korea underscores the global legal challenges within the crypto realm, while Trust Wallet’s partnership with TON signifies a major leap in blockchain integration. The launch of Gnosis AI by GnosisDAO promises to innovate prediction markets, and the SEC’s charges against BitClout’s founder highlight the increasing scrutiny of crypto ventures. Moreover, Ondo Finance’s introduction of USDY on Aptos illustrates a notable progress in uniting traditional finance with DeFi. These events collectively reflect the evolving nature of cryptocurrency and its interplay with regulatory and technological developments.
