#177 - Do Kwon's exile finally ends in airport arrest 🚔

GM and welcome to Decentra Daily.

We're the web3 newsletter with the news you can use to make your web2 frens snooze.

Today,

1. Do Kwon's exile finally ends in arrest 🚔

2. Coinbase receives an SEC notice 😬

3. The Otherside Second Trip is on Saturday 🧳

Plus, all the web3 headlines, memes, and Tweets of the day.

Top 24hr collections 📈

via OpenSea

1. BAYC - 38 sales earning 2,181 ETH (122%)

2. Otherdeed - 1,008 sales earning 1,885 ETH (74%)

3. MAYC - 140 sales earning 1,720 ETH (44%)

4. Doodles - 264 sales earning 919 ETH (49%)

5. Azuki - 50 sales earning 660 ETH (71%)

Do Kwon, founder of $Luna/Terra, arrested at Montenegro airport

Yesterday, news broke that Do Kwon was arrested at an airport in Montenegro.

The country’s Minister of Interior said “Montenegrin police have detained a person suspected of being one of the most wanted fugitives."

"Suspected" of being Do Kwon, because the exiled founder's passport was revoked, so he was traveling under false documents with no official ID.

The arrest ends 6 months of exile for Kwon, who reportedly spent most of that time in Eastern Europe.

Why was Do Kwon on the run?

It all goes back to Kwon's stablecoin, TerraUSD.

TerraUSD was designed to be more decentralized than other stablecoins. Instead of being backed by a central reserve, its price was maintained through an algorithm.

Sounds too good to be true, right? Well...

Last May, TerraUSD de-pegged from the dollar, resulting in $40 billion in losses. Tera Labs' associated cryptocurrency, Luna, went to 0, and investors like 3AC lost huge amounts of money, folding shortly after.

South Korean authorities issued an arrest warrant for Kwon last September, before INTERPOL issued a red notice, making him wanted worldwide.

Just last month, the SEC piled on with its own charges, accusing Kwon of "defrauding investors".

Notable Tweets ✅

Ser 🫡👏

On the web3 wire

The "Amazon and WhatsApp" of web3 just got another $28 million in funding 🛒The AI-powered super app called OP3N is now valued at $100 million by investors.

The Arbitrum homepage crashed under the strain of airdrop claimers 💥The average eligible wallet was expected to receive 625 tokens.

Coinbase shares dropped almost 20% after receiving its SEC notice 📉The exchange's stock was also affected by the White House's annual economic report.

Coinbase prepares for battle with the SEC

This week, Coinbase, web3s most mainstream platform, received a Wells Notice from the SEC.

Oh No! Not a Wells Notice! ...wait, what is a Wells Notice?

A Wells Notice is a letter that the SEC sends when they're planning to charge a company with something. It gives the recipient a heads-up and allows them to respond in writing.

I see. Concerning news. 🤔

The SEC has been trolling crypto companies for years at this point, Coinbase included, taking digs, filing suits, and threatening action.

This time, Coinbase CEO Brian Armstrong thinks Gary Gensler and his cronies could be targeting Coinbase's staking products.

In a thread, he says he's confident in the legality of Coinbase operations and welcomes the "open and public forum" that legal action would bring.

He also helped Crypto Twitter understand the SEC's beef by putting things in sports terminology:

It's time to ready the troops

Coinbase also released an official statement in a blog post. TL; DR? They said:

"We are prepared for this disappointing development."

Chad response. Avengers assemble.

It's worth noting that Wells Notices aren't always followed by enforcement. Coinbase has until March 29 to respond.

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Otherside 2nd Trip is scheduled for Saturday, 12 pm ET

Forget cottage country. This weekend, you're going somewhere far more interesting.

Yuga has released more information on the second live demo of its Otherside metaverse, which will happen at 12 pm ET this Saturday, with the lobby open 30 mins beforehand.

The link to The Trip will appear in this blog post on the day.

What activities are planned?

Like any good Vacation Package, Yuga has a packed itinerary for Otherdeed holders and guests lucky enough to secure one of the 10,000 trip spots.

They'll be splitting voyagers into four color-coded teams, each with a pre-selected team captain:

• Jimmy Wong

• Brycent

• Lowbellie

• Champ Medici

Teams will compete in as-yet unrevealed games...

Meme of the day

Can anyone help this guy out?

Next up: web3 threads of the week 👋

What we're reading this week