The co-founder of Terraform Labs, Do Kwon, facing criminal charges in the United States Federal Court, could see a change in his accusation act based on bills currently moving through the American Congress.
According to the reports of Inner City Press, the lawyers and prosecutors of Kwon gathered for a state conference before judge Paul Engelmayer at the American district court in the South District of New York on Wednesday. The judge would have said that he was “aware of the genius law”, suggesting that this could have an impact on Kwon’s accusations on securities fraud.
The law on engineering, or guidance and the establishment of national innovation for American stables, adopted the US Senate on June 17, but still faced a possible vote in the House of Representatives before US President Donald Trump decides to sign the bill. The legislation, targeting the regulations for the payment stages, could affect the charges of Kwon linked to the stablecoin algorithmic terrausd (UST) and the Luna token of the platform.
The Terra UST spent the dollar in 2022, probably contributing to the ecosystem accident and leading to authorities in South Korea and the United States who pursue criminal accusations against Kwon and other executives.
The co-founder of Terraform Labs was arrested in Montenegro in 2023 for accusations unrelated to the crypto and, after numerous delays in court, was extradited to the United States in December to face nine chiefs of crime linked to securities fraud, fraud of goods, market manipulation and money laundering.
Kwon pleaded not guilty to all accusations and is detained without surety. In April, his criminal trial should start in January 2026.
In relation: The number of victims of Do Kwon could exceed one million – judicial depot
In 2024, a jury found Terraform Labs and Kwon responsible for the fraud of investors as part of a civil affair of the Securities and Exchange Commission (SEC). Judge Engelmayer would have explored whether the decisions in the civil affair would link the Kwon criminal affair.
Will the act genius become American law?
After adopting the Senate, the Act on Engineering is owned in the House of Representatives for examination. The bill of the bill, the transparency and the responsibility of the stablecoin for a better economy of the big book, or a stable law, also moves to the Chamber, because the two chambers consider the legislation for the structure of the digital asset market.
https://www.youtube.com/watch?v=ziirhv3cbog
All bills could affect the way in which American financial regulators such as the SEC and the Commodity Futures Trading Commission and the authorities deal with cases involving digital assets.
In February, the legal team of the former SAFEMOON CEO, Braden John Karony, asked a judge to delay his criminal trial for a conspiracy to fraud the United States, money laundering and fraud by wire, assuming that Trump could direct changes in the securities laws affecting his charges. Karony was found guilty of all accusations in May.
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