Possible Amendments to US Crypto Regulations Could Shape Do Kwon’s Criminal Proceedings

A novel evolution in the United States’ cryptocurrency regulatory framework suggests the accusations levied against Do Kwon, the founder of Terraform Labs, could be subject to significant alterations. American legislators are presently examining a suite of proposed digital currency statutes, and these laws, if enacted, might redefine how crypto-related fraud cases are handled. The criminal case against Kwon encompasses accusations of market manipulation and the dissemination of deceptive information to investors, particularly concerning the stability of the TerraUSD stablecoin, which imploded in 2022, sparking substantial market-wide losses. Legal experts are keenly monitoring these legislative proceedings, as the demarcation of digital assets and digital securities could directly influence the defensive strategy Kwon might employ. It’s conceivable that the defense could argue certain digital assets in question do not constitute securities under the new legal definitions, potentially leading to the dismissal or reduction of specific charges. It’s critical to acknowledge the outcome of this legal assessment remains uncertain, yet it underscores the growing intricacies of crypto’s legal governance and its latent impact on pending criminal cases. The interplay between freshly minted legislation and the standing case against Kwon will ultimately dictate the trajectory of legal actions directed at him.