Today's key developments in the crypto ecosystem are significant. Terraform Labs co-founder, Do Kwon, pleads guilty while Circle unveils its blockchain network "Arc". An Ethereum developer is also released in Turkey.
Do Kwon, co-founder of Terraform Labs, has finally pleaded guilty to two counts of wire fraud in crypto and conspiracy. Having previously maintained his innocence, he has now made a complete about-face, facing a potential sentence of up to 25 years in prison. However, a plea agreement with prosecutors reportedly recommends a maximum sentence of 12 years. The verdict is expected on December 11.
This decision marks a decisive turning point in the Terraform Labs case. Recall that Do Kwon and his company were at the center of the collapse of the Terra/LUNA ecosystem in May 2022, an episode that shook the entire cryptocurrency market. Do Kwon’s guilty plea seems to signal the end of this saga that has permanently tarnished the sector’s reputation.
Meanwhile, Circle, the issuer of the USDC stablecoin, has announced the upcoming launch of its own blockchain network, named “Arc“. Scheduled for release this year, this new network will be compatible with the Ethereum Virtual Machine (EVM) and aims to provide high-quality infrastructure for payment applications, exchange, and financial markets based on cryptocurrencies.
Notably, USDC will be Arc’s native token, allowing users to pay transaction fees with this stablecoin. This tight integration between the network and Circle’s flagship asset underscores the company’s ambition to establish itself as a major player in “crypto finance” in the coming years.
Circle also announced a 53% increase in revenue for the second quarter of 2025, demonstrating the strong momentum of its business.
Another notable event today, Ethereum developer Federico Carrone, known by the pseudonym “Fede’s Intern“, has been released after being detained for 24 hours in Turkey. He was accused of aiding the “illegal” use of Ethereum, in connection with privacy protocols such as Tornado Cash.
Although the case is still ongoing, Carrone claims that his activities were purely related to research on “cryptocurrency mixers” and not illegal practices. His Turkish lawyer continues to work on his defense.
This incident illustrates the legal gray areas surrounding certain crypto technologies, particularly those related to transaction privacy. It also highlights the challenges faced by developers in the sector, who must navigate still-evolving regulations.
Today’s crypto news demonstrates the volatility and complexity of the rapidly evolving cryptocurrency sector. From Do Kwon’s guilty plea to Circle’s ambitious initiatives, to the legal troubles of an Ethereum developer, these events highlight the significant challenges the industry must face.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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