Key Points:
- The recent DOJ memo delineating the agency’s crypto enforcement guidance will not impact the prosecution of Terraform Labs’ co-founder, Do Kwon.
- Kwon’s trial start date has been shifted to February 17, 2026, due to scheduling conflicts.
Overview:
In a recent hearing in New York, prosecutors clarified that a Department of Justice (DOJ) memo issued Monday would not lead to adjustments in the charges against Do Kwon, which encompass commodities and securities fraud, as well as several other charges such as wire fraud and conspiracy to defraud.
The memo, presented by Todd Blanche, informs DOJ staff of the revised approach towards crypto-related prosecutions, notably not pursuing charges against crypto exchanges for the actions of their users. During the proceedings, Judge Paul Engelmayer inquired about the implications of the memo on Kwon’s case, prompting an answer from the prosecution stating they have “no plans” to alter their current charges.
David Patton, Kwon’s lead attorney, indicated that the memo could incite some pre-trial motions, primarily focused on whether certain cryptocurrencies involved are classified as securities. This is a crucial point, given that a civil case last year categorized them as such during a ruling involving the Securities and Exchange Commission (SEC).
Pre-trial motions are anticipated to be filed by July, with a subsequent hearing scheduled for June 12.
Due to the aforementioned scheduling issues, Kwon’s criminal trial has been delayed from the original date of January 26, 2026.
For further details, read more on CoinDesk: Do Kwon’s Criminal Trial Set for 2026.
