Do Kwon’s Guilty Plea and Latest Developments

During the U.S. court hearing, the judge confirmed that Do Kwon will admit guilt to the two main charges of conspiracy to defraud and wire fraud. This development is considered a critical step in the legal process surrounding the collapse of TerraUSD, which sent shockwaves through the crypto market.

The TerraUSD Crisis and Do Kwon’s Legal Journey

In 2022, TerraUSD (UST) — a stablecoin with a market value of $40 billion — and its sister token Luna collapsed, creating a massive shock in the crypto market. Billions in investor funds were wiped out, many firms went bankrupt, and the broader market entered a deep crisis.

Following the collapse, Do Kwon faced multiple serious charges including fraud, market manipulation, money laundering, and wire fraud. In 2023, he was arrested in Montenegro while attempting to flee with a forged passport and was held for nearly a year before being extradited to the United States.

In April 2025, the U.S. Securities and Exchange Commission (SEC) sued Kwon and Terraform Labs, accusing them of misleading investors. Kwon agreed to pay $4.47 billion in damages and liquidate company assets to compensate victims.

A Key Turning Point for the Crypto Industry

Kwon’s guilty plea is seen as one of the most significant legal moments in the history of altcoin and blockchain-related cases. It also reflects growing regulatory scrutiny over algorithmic stablecoins and complex financial models.

The case highlights the challenges of prosecuting cross-border crypto crimes. The jurisdictional dispute between the U.S. and South Korea revealed just how complicated regulation and enforcement can be in a market without clear geographic boundaries.

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Genius Group Halts Bitcoin Purchases Due to Court Injunction

Genius Group announced that it has temporarily halted Bitcoin purchases due to a preliminary injunction issued by the US District Court for the Southern District of New York. The court ruling, issued on March 13, prohibits the company from using investor funds to purchase Bitcoin.

Dispute Between Genius Group and Fatbrain AI

The decision to halt Bitcoin purchases is linked to an ongoing dispute between Genius Group and Fatbrain AI.

• In March 2024, Genius Group and Fatbrain AI completed a merger and acquisition agreement.

• However, on October 30, Genius Group initiated arbitration proceedings to terminate the deal, accusing Fatbrain AI executives of fraud.

• In February, Fatbrain AI executives Michael Moe and Peter Ritz filed for a temporary restraining order (TRO) to block Genius Group from selling shares, raising funds, and purchasing Bitcoin.

Following the court’s decision, Genius Group was forced to shut down certain divisions, halt marketing activities, and sell 10 Bitcoin from its 440 BTC treasury to fund operations.

Genius Group May Further Reduce Bitcoin Reserves

The company stated that it is taking all necessary measures to minimize Bitcoin sales, but it may be forced to downsize its Bitcoin reserves if the court ruling remains in effect.

“Genius is taking all necessary measures to minimize Bitcoin sales, but if the court ruling remains in place, we may need to reduce our Bitcoin treasury further in the coming months,” the company said.

Genius Group: “US Court is Forcing Us to Violate Singapore Law”

Genius Group claims that the US court ruling has also forced the company to violate Singapore law.

The company stated that halting share-based compensation for employees contradicts Singapore’s employment laws.

Genius Group CEO Roger James Hamilton said:

“We never imagined that a US court could block a public company from issuing shares, raising funds, or purchasing Bitcoin—decisions that should normally be made by the company’s shareholders or Board, not a court.”

Despite legal restrictions, Genius Group reaffirmed its commitment to supporting Bitcoin.

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Mark Longo, the owner of Peanut the Squirrel, sent a cease-and-desist letter to Binance over intellectual property infringement.

Longo claimed that Binance used his “Peanut the Squirrel” trademark and mascot likeness without permission to promote the PNUT-themed memecoin.

Longo stated that he has been using the PNUT brand for educational and animal welfare initiatives since 2017. The letter demands that Binance immediately stop using the PNUT brand and mascot likeness, with a legal threat including penalties of up to $150,000 per infringement.

This case raises an important issue regarding intellectual property rights in the crypto space, where memecoins and viral branding blur legal boundaries.

Binance has not yet publicly responded to the allegations. Legal experts note that this case could set a precedent for intellectual property rights in the memecoin market.

Longo’s related tweet:

Mark Longo: My legal team initiated action against Binance for the unauthorized use of my intellectual property, including images and stories featuring my beloved animals. This is the first of multiple cease and desist letters to be issued. I’m committed to protecting my creative work and sending a clear message: unauthorized use of my IP will not be tolerated. $JFP – WE WILL GET JUSTICE

Details of Allegations

According to Longo’s legal team, the infringements include the unauthorized use of the terms “PEANUT THE SQUIRREL” and “PNUT,” as well as a specific copyrighted image of the squirrel mascot.

The letter claims that Binance’s PNUT-themed cryptocurrency and branding, which mirrors the mascot’s likeness, create confusion among consumers and imply a connection or endorsement not authorized by Longo.

The cease-and-desist letter states that Binance’s actions violate the United States Copyright Act and constitute the unlawful reproduction and display of the protected intellectual property.

PNUT Memecoin and Market Impact

Longo’s letter and public announcement coincided with the rapid rise of the PNUT memecoin, which gained popularity following a viral event at the end of October.

Despite the tragic nature of the story behind the memecoin, the event led to the sudden appearance of multiple versions of Peanut the Squirrel-themed memecoins in the crypto market.

Two Peanut-themed memecoins made it into the top 10 tokens on Dexscreener’s 24-hour charts, while the PNUT token reached a market capitalization of up to $2.25 billion on November 14.

Next Steps and Legal Implications

The public cease-and-desist letter demands that Binance end all infringing activities by December 31 and provide written confirmation of compliance.

If the crypto exchange fails to adhere to Longo’s legal demands, the creator of Peanut the Squirrel could seek injunctive relief, damages, and coverage of attorney fees in a U.S. court.

Major exchanges, including Coinbase and Kraken, are reportedly considering listing PNUT, which could escalate the issue further.

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