US Prosecutors: "Kwon Do-hyung's Trial Unaffected by Crypto Task Force Disbandment... Proceeding as Scheduled"
Summary
- The US Department of Justice announced that Kwon Do-hyung's trial will proceed as scheduled, regardless of the disbandment of the cryptocurrency task force.
- It was reported that charges of fraud and conspiracy to commit fraud may be applied to Kwon Do-hyung, co-founder of Terraform Labs.
- The securities status of cryptocurrencies may be considered during the trial, which falls under an exception clause in the DOJ guidelines.
According to CoinDesk, a cryptocurrency-focused media outlet, on the 10th (local time), the United States Department of Justice (DOJ) announced that the trial of Kwon Do-hyung, co-founder of Terraform Labs, will proceed as scheduled regardless of the disbandment of the cryptocurrency task force and the reduced priority of regulatory enforcement.
Prosecutors stated, "The charges applied in indicting the defendant focus on fraud and conspiracy to commit fraud," adding, "The securities status of the cryptocurrencies involved in this case may be considered during the trial."
They further noted, "This falls under an exception clause in the DOJ guidelines."
Previously, on the 7th (local time), the DOJ announced the disbandment of the National Cryptocurrency Enforcement Team (NCET), formalizing guidelines that do not hold cryptocurrency industry participants legally accountable for violations of federal securities and commodities laws.
However, normal prosecution is possible if there is a need to determine whether digital assets are securities or commodities, or if there are grounds for criminal charges.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
