During a status conference held on Wednesday, the judge indicated the potential influence of the GENIUS Act on the case against Do Kwon, co-founder of Terraform Labs.
Impact of GENIUS Act on Legal Proceedings
Judge Paul Engelmayer discussed the possible consequences of the passage of the GENIUS Act for Do Kwon's case in the U.S. District Court for the Southern District of New York. The judge mentioned that the legislation passed by the Senate on June 17 could somehow affect his charges.
Situation with TerraUSD Stablecoin
Do Kwon is facing criminal charges in federal court in the U.S. related to the collapse of the Terra ecosystem, resulting in losses of $40 billion. The prosecution argues that Kwon deceived investors by claiming that the TerraUSD (USDT) stablecoin was effective and reliable.
Prospects for Do Kwon's Case
Do Kwon's case is scheduled for trial in February 2026, with the GENIUS Act's passage anticipated prior to the proceedings. Should the law be enacted, federal agencies will have 180 days to develop final regulations.
Thus, the passage of the GENIUS Act could have a direct impact on Do Kwon's case and his future in the legal process.
