There were speculations about how the recent disintegration of the Department of Justice’s (DOJ) crypto unit would impact pending crypto cases, including that of Terraform co-founder Do Kwon.
However, US prosecutors have clarified that they do not plan to change the charges against the crypto entrepreneur based on the DOJ’s recent staff memo.
US DOJ Close Down Crypto Enforcement Unit
On Monday, the DOJ closed its crypto enforcement team as part of President Donald Trump’s wider shift in federal policy.
The new administration had promised a friendlier approach to digital assets and has been taking measures to achieve it. Dismantling its crypto team was a strategy to narrow the scope of its crypto-related enforcement priorities.
As a result, U.S. Deputy Attorney General Todd Blanche notified staff that the DOJ would no longer pursue prosecution against crypto exchanges.
This also applies to mixing services and offline wallets that were previously prosecuted for the acts of their end users. Blanche also informed staff not to criminally charge any federal securities or commodities laws violations except under specific circumstances.
Do Kwon Still Expects Pre-trial Motions
More recently, Paul Engelmayer, a judge with the U.S. District Court of the Southern District of New York (SDNY), questioned prosecutors on whether Blanche’s memo would impact the charges against Kwon.
Noteworthy, Kwom is being charged on two counts of commodities fraud and securities fraud, as well as five other charges, including wire fraud and conspiracy to defraud.
In response, the prosecution team clearly said it has “no plans” to change charges against Kwon. David Patton, Kwon’s lead attorney and a partner at Hecker Fink LLP, told Engelmayer expects that the contents of Blanche’s memo could bring about some pre-trial motions from the defense.
US Prosecutors Reassure Affected Users in Do Kwon’s Case
Meanwhile, it’s been more than three months since prosecutors outlined procedures for public notice for affected victims in the Kwon criminal case.
These victims were guaranteed protection from further harm and access to the prosecuting attorney for consultation. The prosecutors also guaranteed them updates and eligibility for restitution, as appropriate.
Based on estimates, there are over one million affected victims.
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