GM, this is The Crypto Explorer, where the adventures never stop and the coins never sleep!

So hold on tight to your wallets, because things are about to get a little wild and wacky.

Here’s what we got for you today:

• Can token holders be held responsible for a hack? US court weighs in

• South Korea and the US fight over the extradition of Terra founder Do Kwon

Can Token Holders be Held Responsible for a Hack? US Court Weighs in

The judges of the United States District Court of Southern California have denied the motion to excuse a clause that essentially states that:

If you own a governance token for the bZx DAO, you're plausibly liable for a whopping $55 million in a hack that occurred in 2021.

The crypto community is like "Wait, what!" 😲 

A bZx developer had fallen for a “phishing” scam that gave a hacker access to the protocol’s private keys and stole $55 million.

Today, the court is emphasizing that DAO governance members fell under the arrangement of a "general partnership" and as such, each and every token holder is potentially responsible for the return of the lost funds, even if they had nothing to do with the hack.

Adam Cochran (a managing partner at Cinneamhain Ventures) said that:

However, it is important to note that in the United States, by default, general partnerships imply that there is an equal amount of voting power, which is often not the case for DAOs, where different token holders have a very different amount of control over the protocol.

So can DAOs be classified as “general partnerships” or not? That seems to be the million-dollar question.

In any case, it looks like the bZx DAO case is going to be one for the history books.

South Korea and US Fight over Extradition of Terra Founder Do Kwon

There’s an international “extradition” battle going on, and it’s for Do Kwon (Terra Luna founder), and his business associate Hon Chang-Joon.

South Korea and the US are fighting over who gets to extradite them.

Kwon and Joon were arrested at Montenegro’s Podgorica airport last Friday for allegedly entering the country illegally and forging official documents.

South Korea wants both of them, while the US is only after Do Kwon who has been charged with securities fraud, wire fraud, and commodities fraud by prosecutors in New York.

But here's the kicker:

Montenegro’s justice minister, Marko Kovac has said that they could both be facing up to five years in prison for possession of false documents and could only be extradited after a court ruling.

So, it looks like the US and South Korea might have to wait a while before they can get their hands on these guys.

In the meantime, we can't forget the reason why they want these guys so bad - Kwon's algorithmic stablecoin collapsed in May last year and wiped over $20.5 billion in nominal value from personal crypto wallets.

Following the collapse, South Korea even issued an arrest warrant for Kwon and five other employees last year September, and Interpol issued a global request in the same month also.

I tell you, these guys are in a lot of trouble!

That's all we have for today. See you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.