Terraform Labs co-founder Do Kwon, who faces criminal charges in the US federal court, may see a change in his accusation based on bills that are currently moving to the US Congress.
According to reporting from the Inner City Press, Kwon’s lawyers and prosecutors recognized For a status conference before Judge Paul Engelmayer in the US district court for the Southern District of New York on Wednesday. The judge reported that he was “thinking of the Genius Act,” suggesting that Kwon’s charges could affect security fraud.
The Genius Act, or the guide and establishment of national innovation for US Stablecoins, The US Senate passed On June 17, but it was still facing a possible vote in the House of Representative before US President Donald Trump decided to sign the law. The law, targeting regulations for payment stablecoins, may affect Kwon’s charges related to terrausd (UST) algorithmic stablecoin and the Luna token of the platform.
Terra’s UST removed from the dollar in 2022, likely contributing to the ecosy system and leading the South Korean and the US authorities to pursue criminals against Kwon and other executives.
The co-founder of Terraform Labs was arrested in Montenegro in 2023 on crypto charges, and, after many court delays, were extradited to the US In December to deal with nine counts of felony related to security fraud, commodity fraud, market manipulation and money losses.
Kwon has please not guilty on all charges and held without bail. In April, his criminal trial is expected to begin in January 2026.
Related: The number of victims of Do Kwon may exceed one million – court filing
In 2024, a jury Found terraform labs and kwon liable for suffering investors as part of a civil case with the Securities and Exchange Commission (SEC). Judge Engelmayer has been reported to be explored if civil case decisions will unite Kwon’s criminal case.
Will the Genius Act be US law?
After the Senate was passed, the Genius Act was held in the House of Representative to consider. Along with the bill, Stablecoin’s transparency and responsibility for a better ledger economy, or stable gestures, also moves in the Chamber as both rooms consider the law for the digital asset market structure.
https://www.youtube.com/watch?v=ziirhv3cbog
Any of the bills can affect how US finance regulators such as the SEC and the commission trade commission and authority are treating cases involving digital property.
In February, the former team of legal safemoon CEO Braden John Karony asked a judge To delay his criminal trial for conspiracy to deceive the United States, the laundering of money and wire fraud, thinking that Trump could direct changes to security laws affecting his bills. KARONY IS Found to be guilty of all charges in May.
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