U.S. prosecutors maintain charges against Terraform Labs founder amid crypto shift
DOJ memo won't alter Do Kwon's charges
U.S. prosecutors have announced that the recent shift in the Department of Justice’s (DOJ) approach to crypto enforcement will not impact the charges currently pressed against Terraform Labs founder Do Kwon.
In a memo issued by Deputy Attorney General Todd Blanche, DOJ staff were instructed to refrain from pursuing enforcement actions against crypto firms, except under special circumstances, effectively decoupling criminal investigations from regulatory frameworks implemented by other agencies. Despite this new directive, prosecutors confirmed at a pre-trial conference that there are no plans to alter the existing charges against Do Kwon. His attorney, David Patton, noted that while the memo might inform pre-trial motions, it does not directly affect the case.
Trial postponement and future implications
Do Kwon, extradited from Montenegro and having pleaded not guilty earlier this year in New York, now faces a battery of charges including commodities fraud, securities fraud, wire fraud, and conspiracy to commit money laundering. If convicted on all counts, he could face up to 130 years in prison. In a further development, the court has postponed his trial to February 17, 2026, from the original January 26 date, with the next pre-trial conference scheduled for June 12, 2025. U.S. prosecutors remain committed to enforcing the law while the DOJ’s new stance on crypto compliance reflects a broader shift away from punitive measures against crypto firms. As regulators and market participants await further clarity, the case against Do Kwon will continue to be a focal point in discussions over the intersection of digital assets and traditional legal frameworks.
Looking ahead, industry analysts will closely watch how this recalibration in enforcement priorities influences future crypto-related prosecutions, potentially redefining the legal landscape for digital assets.
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