The Department of Justice isn’t flinching. Despite a recent memo suggesting a softer touch with crypto firms, prosecutors say the case against Terraform Labs founder Do Kwon remains firmly on track. It’s a bit like deciding to still fix a leaky faucet even after someone suggests maybe it’s just…character. The charges – commodities fraud, securities fraud, wire fraud, conspiracy to launder money – aren’t going anywhere, at least not yet.
- Do Kwon, founder of Terraform Labs, still faces serious charges despite a DOJ memo suggesting a lighter approach to crypto firms. The charges include commodities fraud, securities fraud, and money laundering.
- The DOJ memo advises caution in pursuing crypto exchanges, suggesting regulators should take the lead, but this doesn’t seem to affect the ongoing case against Kwon. He is already in the legal system, and the prosecution is proceeding.
- Kwon’s trial date has been pushed back to February 17, 2026, and he faces a potential 130-year prison sentence if convicted. The case stems from the collapse of TerraUSD and Luna, which caused billions in investor losses.
Deputy Attorney General Todd Blanche issued the memo Monday, essentially telling DOJ staff to cool it with chasing crypto exchanges and mixing services unless there’s a really good reason. The idea, apparently, is to let the actual regulators – the ones President Trump appointed – handle things without the DOJ piling on criminal charges. It’s a shift, sure, but it doesn’t seem to apply to Kwon. He’s already in the system, and the wheels of justice, well, they turn slowly. And sometimes, they just keep turning.
Kwon’s Defense Prepares for Battle
At a pre-trial conference Thursday, prosecutors made it clear: Blanche’s memo isn’t a get-out-of-jail-free card for Kwon. David Patton, Kwon’s lawyer, isn’t exactly thrilled. He suggested the DOJ’s new stance *could* lead to some pre-trial motions. Which is lawyer-speak for “we’re going to try and poke holes in this case.” It’s a long shot, maybe, but that’s what lawyers do. They try. It’s a bit like arguing with a parking ticket – you know you probably lost, but you try anyway.
The trial date has been pushed back, too. Originally set for January 26, 2026, it’s now scheduled for February 17, 2026. Another pre-trial conference is looming on June 12, 2025. Plenty of time for lawyers to argue, prosecutors to prepare, and Kwon to…well, wait. It’s a waiting game, and Kwon’s facing a potential 130 years in prison if he loses. That’s a long time to wait for anything, really.
Kwon pleaded not guilty earlier this year, shortly after being extradited from Montenegro. Extradition, by the way, is a messy business. Lots of paperwork, international cooperation, and probably a few headaches. It’s not exactly a relaxing vacation. The whole saga has been a bit of a rollercoaster, and it’s far from over. The DOJ wants to make an example of Kwon, and Kwon wants to avoid spending the next century in a federal prison. It’s a classic showdown, really.
The charges against Kwon stem from the collapse of TerraUSD and Luna, which wiped out billions of dollars in investor funds. It was a spectacular failure, and the fallout continues to be felt throughout the crypto world. It’s a cautionary tale, a reminder that even the most promising projects can go wrong. And sometimes, spectacularly wrong. It’s a good lesson for anyone thinking about jumping into the crypto market: do your research, understand the risks, and don’t invest more than you can afford to lose. Because, as they say, past performance is no guarantee of future results. Especially in crypto.
