👮 Do Kwon arrested

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Do Kwon, founder of Terraform Labs, was arrested by Montenegrin police last week, following a request from the US and South Korea. Kwon is wanted in connection with a $40 billion crash of the firm's cryptocurrency, Kwon's lawyers plan to dispute his detainment.

Nasdaq, a traditional exchange operator, is entering the crypto world by offering custody services to its clients. Elsewhere, the European Union's upcoming anti-money laundering package will be discussed this week which includes provisions that specifically address crypto assets. Decentralized autonomous organizations and decentralized finance platforms are also subject to the new anti-money laundering rules.

Markets

Nasdaq says institutional appetite in crypto is steady as it plots push into custody, trading (2 minute read)Nasdaq, an exchange operator with a 52-year history, is planning to enter the world of cryptocurrency by offering custody services to clients. The company is waiting for approval from the New York Department of Financial Services by the end of June to begin this service. Nasdaq's decision to enter the crypto space was triggered by the collapse of Three Arrows in July, which resulted in a loss of trust in the market. The company believes that its established reputation will help it establish a strong position in the crypto industry. Despite the recent slump in cryptocurrency prices and the bankruptcies of companies such as FTX, Voyager Digital, and Celsius Network, Nasdaq is determined to continue its plan. 

Do Kwon, wanted in $40 billion crypto token crash, arrested in Montenegro (2 minute read)Do Kwon, the founder of Terraform Labs, has been arrested by the police in Montenegro, following a request from the US and South Korea. Kwon is wanted in connection with a $40 billion crash of the firm's cryptocurrency, which devastated retail investors worldwide. Montenegro's interior minister, Filip Adzic, announced the arrest of Kwon on Twitter, stating that he is "believed to be one of the most wanted fugitives." Federal prosecutors in New York have indicted Kwon on fraud charges, including conspiracy to defraud, market manipulation, wire fraud, commodities fraud, and securities fraud. South Korea issued an arrest warrant for Kwon in September, and officials requested Interpol to issue a "red notice" to apprehend him. Both US and South Korean officials have expressed their intention to extradite Kwon. Bloomberg has reported on the matter.

Arbitrum Airdrop Now Live, ARB Trades Below $2 Amid Heavy Volatility (3 minute read)Arbitrum's ARB governance token trading began on March 23 after the announcement of the airdrop the previous week. The ARB token is now available for trading on centralized exchanges such as BitMEX, Binance, Bitfinex, Kraken, and decentralized exchanges such as Uniswap. However, there was a temporary issue with the front end for token claims on Thursday as users rushed to secure their tokens from Arbitrum's website. The protocol has reminded users that they have six months to claim their ARB coins. The price of ARB started at $11 on some trading venues, but it subsequently dropped below $2, which is a common price action after a crypto airdrop. Traders also experienced significant price volatility during the OP airdrop from Optimism, another Ethereum L2 scaling solution.

Tech

NFT Trader Accidentally Burns $129K CryptoPunk (3 minute read)A trader of non-fungible tokens (NFTs) was left devastated after accidentally sending a CryptoPunk he purchased for 77 Ethereum to a burn address on Friday. Burn addresses are digital wallets without private keys, making them one-way gateways that can only receive assets such as cryptocurrencies and NFTs. As a result, the NFT is permanently removed from circulation, making it impossible for it to be traded or owned again. The trader, Brandon Riley, bought CryptoPunk #685 two weeks ago and made an error while trying to wrap it to take a loan against it on Twitter. Riley planned to post the NFT on NFTfi.com, where he could earn a yield of approximately 7% per year.

Avalanche wants to digitize all of the world’s assets on the blockchain (3 minute read)Ava Labs, a blockchain technology company that created the Avalanche layer-1 blockchain, has raised around $640 million in funding and is backed by investors including Polychain Capital and a16z. In recent months, the firm has entered into partnerships with major brands and companies, including Amazon Web Services. The Avalanche blockchain, which is compatible with the Solidity coding language, enables developers to build multifunctional blockchains and decentralized applications with a focus on speed and low transaction costs. It has a thriving ecosystem of hundreds of projects, ranging from decentralized exchanges like 1inch to digital asset security firms like BitGo.

Misc

Do Kwon to reportedly appeal against court’s decision to extend detention (2 minute read)Do Kwon, the co-founder of Terraform Labs who was arrested in Montenegro for using fake documents, is reportedly appealing the court's decision to extend his detention for up to 30 days. Kwon's legal representative confirmed the appeal against the Montenegrin court's decision to detain the entrepreneur for longer than usual. According to local media Vijesti, Kwon's extended detention was approved by the court due to the high possibility of an escape, as prosecutors highlighted that Kwon's identity was not clearly identified and he was a foreign national. The decision was made after Kwon was caught at Podgorica airport while attempting to fly to Dubai.

What the EU’s anti-money laundering regulations mean for crypto (3 minute read)The European Union's upcoming anti-money laundering package features provisions that specifically address crypto assets. The bill is currently under consideration by two European Parliament committees, who will vote on its adoption on Tuesday. The proposed legislation includes various requirements for the crypto industry and firms offering services within the EU. However, the bill is still subject to change even if it passes the committee vote. The anti-money laundering rules also apply to decentralized autonomous organizations and decentralized finance platforms that are "controlled directly or indirectly, including through smart contracts or voting protocols, by identifiable natural and legal persons," according to a draft of the bill obtained by The Block. 

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