The U.S. prosecutors claim that the Justice Department's adjustment to encryption policy does not affect the charges against Do Kwon

According to The Block, U.S. prosecutors have stated that despite the Department of Justice (DOJ) recently releasing an internal memo relaxing enforcement standards for crypto companies, this will not alter existing charges against Terraform Labs founder Do Kwon. The memo, signed by Deputy Attorney Todd Blanche, calls for a temporary halt to criminal prosecutions of crypto exchanges and mixing services except in special circumstances and states that related regulatory work should be handled by agencies from the Trump administration. Do Kwon is currently facing multiple charges including commodity fraud, securities fraud, wire fraud and conspiracy to launder money; if convicted on all counts he could face up to 130 years in prison. The court has postponed the trial date from January 26th 2026 to February 17th 2026 with the next pretrial conference scheduled for June 12th 2025.