Blockchain Expert Analysis: Industry Trends and Technological Innovations

Legal Disputes of Founders in the Crypto Assets Ecosystem

Quandao Heng is the founder of a well-known Crypto Assets company that developed two highly regarded digital assets. However, these assets experienced significant market fluctuations in May 2022, leading to substantial losses for global investors and raising questions about potential financial misconduct.

International Pursuit and Arrest Process

In September 2022, the South Korean prosecution submitted a request for a red notice from Interpol for Kwon Do-hyung to assist in his apprehension. After that, Kwon Do-hyung was missing for several months. Until March 23, 2023, he was finally arrested in Montenegro. Subsequently, the U.S. prosecution charged him with defrauding investors.

Legal Proceedings Progress

After a long legal process, on April 5, 2024, a U.S. jury ruled that Kwon Do-hyung and his company are responsible for securities fraud. This ruling marks a significant advancement in the case.

Extradition and Facing Charges

On December 31, 2024, the Montenegrin authorities extradited Kwon Do-hyung to the United States. On January 6, 2025, the U.S. Department of Justice announced that Kwon Do-hyung had arrived in the United States and made his first court appearance in Manhattan Federal Court on December 31, 2024. He currently faces nine federal charges, including commodity fraud, securities fraud, telecommunications fraud, and conspiracy to commit money laundering. If found guilty on all counts, Kwon Do-hyung could be sentenced to up to 130 years in prison.

This series of events has sparked extensive discussions in the Crypto Assets industry regarding regulation and investor protection, and has highlighted the legal and ethical challenges faced in the field. Industry insiders are calling for strengthened regulation to protect investor interests and maintain the long-term healthy development of the industry.