Recent events in the cryptocurrency sector have garnered attention in both the U.S. and South Korea, particularly regarding the Polymarket investigation closure, the acquittal of former Wemade CEO, and the initiation of the trial against Roman Storm, co-founder of Tornado Cash.
Closure of Polymarket Investigation
According to reports, U.S. authorities have concluded their investigations into Polymarket, a decentralized online prediction market. The scrutiny arose from potential bets by U.S. users on election outcomes. The investigation by the Department of Justice and the Commodity Futures Trading Commission (CFTC) intensified following the 2024 elections. In 2022, Polymarket settled for $1.4 million over similar concerns.
Acquittal of Former Wemade CEO
A South Korean court acquitted former Wemade CEO Jang Hyun-guk of charges related to manipulating the WEMIX market. The court ruled that he did not intentionally mislead regarding cryptocurrency prices. The case arose from allegations that Jang falsely announced a halt in WEMIX token liquidation to stabilize the price. While acquitted, prosecutors may appeal the court’s decision.
Start of Roman Storm Trial
In the U.S., the trial of Roman Storm, co-founder of Tornado Cash, has begun. He is accused of facilitating North Korean hackers in laundering money. Prosecutors claim Storm enabled the use of Tornado Cash for laundering, thereby violating U.S. sanctions. The defense argues that Tornado Cash is a neutral tool with legitimate applications and that the developer cannot be held liable for its usage.
The unfolding events in cryptocurrency highlight significant insights regarding the future of regulation in this domain. The closure of the Polymarket investigation, the acquittal of Jang Hyun-guk, and the trial of Roman Storm emphasize the complexities of interactions between the crypto industry and regulatory frameworks.
