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- DOJ confirms no changes to charges against Do Kwon, despite new crypto regulation memo.
- Kwon faces securities fraud, wire fraud, and money laundering charges despite the DOJ’s policy shift.
- Delays in the trial lead to growing uncertainty about Kwon’s legal outcome and sentencing.
U.S. prosecutors have stated that they will not alter the charges levelled against Do Kwon, the founder of Terraform Labs. This comes even after the Department of Justice (DOJ) released a memo recently changing its stance on crypto regulation. The DOJ memo implies a new approach, but it is irrelevant to the case of Kwon.
On Monday, Deputy Attorney General Todd Blanche released a memo addressing how the DOJ will handle crypto firms. The memo outlined that the DOJ would cease enforcement actions against crypto exchanges and mixing services. Blanche explained that regulating digital assets should fall under other agencies’ purview, as the DOJ lacks the legal authority to oversee this industry through court action.
Kwon’s Legal Battle
During a pre-trial hearing on Thursday, the prosecution reiterated the charges against Kwon. Despite the new approach from the DOJ in relation to cryptocurrencies, he emphasized that it does not apply to his case. Additional, Kwon will still be facing more charges, which include securities fraud, wire fraud, and conspiracy to commit money laundering charges. All these charges remain valid irrespective of the policy change the DOJ has made.
Kwon’s defense attorney, David Patton, made a statement regarding the DOJ memo recently released. He was also unsure whether the new change of regulatory strategy would matter in the pre-trial motions stage of Kwon’s trial. However, Patton was unclear whether the Justice Department’s actions stemmed from Kwon’s legal problems. This indicates that the defence will continue to pay keen attention to any other shifts in the enforcement of matters concerning cryptocurrency by the DOJ.
The case was to go to trial on the 26th of January, 2026 but has been move to the 17th of February, 2026. Next pre trial conference shall be conducting on 12th of June 2025. These cause the continuance of the uncertainty with regard to Kwon’s future within the legal system.
DOJ Faces Crypto Challenges
Kwon stands to be sentenced to prison of a maximum of 130 years in prison if he is convicted on all the charges. The charges include fraud in commodities futures and conspiracy. All the charges have been denied by him after which he was extradited to the US from Montenegro earlier this year.
Kwon’s case will have a massive impact on the advancement of the crypto industry and potential future cases in the United States. The Department of Justice’s position on addressing cryptocurrencies remains essential in defining the future of cryptocurrency legislation.
