Key Highlights

• Do Kwon is expected to change his plea, possibly admitting guilt at his Manhattan hearing
• The court order suggests a possible plea deal, which will help them accelerate the resolution and avoid a trial originally set for January 2026
• Kwon has already been hit with a $4.5 billion SEC penalty

Do Kwon, the 33-year-old South Korean entrepreneur once celebrated as a crypto mogul, is expected to plead guilty in one of the biggest fraud cases in digital currency history. The hearing could be the final act in a saga that saw the spectacular implosion of two cryptocurrencies, TerraUSD and Luna, wiping out around $40 billion in value and shaking global confidence in the entire sector.

(Source: Inner City Press on X)

Court filings on Monday revealed that Do Kwon, co-founder of Singapore-based Terraform Labs, may change his plea at a hearing set for Tuesday morning in Manhattan federal court.

This is a major shift until now, as he had insisted on Do Kwon’s innocence against a sweeping list of charges, including securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.

The update, first reported by Bloomberg, came in the form of a short order from the U.S. District Judge Paul Engelmayer, who noted he had been told that Do Kwon might alter his plea. 

The hearing, scheduled for 10:30 a.m. EDT, could see Kwon outline his role in the 2022 crash that erased fortunes and left thousands of investors, from retail traders to big funds, counting their losses.

Do Kwon’s Journey: Crypto Star to Lawbreaker

Kwon’s rise in the crypto world was meteoric. Through Terraform Labs, he launched TerraUSD, a so-called algorithmic stablecoin meant to stay pegged to the U.S. dollar without traditional reserves like cash or bonds. Instead, it relied on a complex system linked to its sister token, Luna, to maintain stability.

For a time, it worked, and Kwon became a star. Investors saw TerraUSD as a breakthrough in decentralized finance, and Luna’s value soared. But in May 2022, the algorithm failed. TerraUSD slipped from its $1 peg, triggering a death spiral for Luna. Within days, Luna’s price plunged to near zero.

The crash was catastrophic. Estimates suggest it vaporized $40 billion in market value. For ordinary investors, some of whom had sunk life savings into the tokens, the losses were devastating. The event also rippled across the broader crypto market, dragging down other projects and fueling calls for tougher regulation.

Flight, Arrest, and Extradition

After the collapse, Do Kwon’s image shifted from crypto visionary to fugitive. South Korean authorities issued a warrant for his arrest, accusing him of violating capital market laws. In March 2023, he was detained in Montenegro, caught trying to board a flight with forged travel documents.

What followed was a months-long legal tug-of-war between the U.S. and South Korea over where he should face trial. Montenegro ultimately sent him to the U.S. in late 2024.

Since then, Kwon has been held in custody, staring down a nine-count criminal indictment. Prosecutors allege he misled investors and manipulated markets to artificially prop up TerraUSD and Luna.

Tuesday’s hearing could determine whether Kwon admits guilt outright or negotiates a plea deal to reduce potential prison time. Judge Engelmayer’s order made it clear that Kwon’s legal team had been instructed to review any agreement with him beforehand.

Originally, a trial was scheduled for January 2026. Prosecutors were preparing to present six terabytes of evidence, a mountain of data that could have stretched proceedings for months. A guilty plea would short-circuit that process, delivering a swifter resolution.

This criminal case follows a civil blow earlier in 2025, when the U.S. Securities and Exchange Commission (SEC) won a $4.5 billion judgment against Kwon and Terraform Labs.

The SEC accused Do Kwon of falsely promoting TerraUSD as a reliable, safe investment while being aware of its fragile design. That case carried no prison time, but the criminal charges do.

The collapse of TerraUSD and Luna remains a cautionary tale. Unlike traditional currencies, cryptocurrencies depend on technology and investor trust rather than government backing. When the system underpinning TerraUSD faltered, it didn’t just sink Luna; it sent shockwaves through the entire market.

For small investors, it was like watching a trusted bridge crumble overnight. Many had believed Kwon’s assurances that TerraUSD was safe, only to find themselves holding tokens worth a fraction of what they paid.

On X (formerly Twitter), reactions to the news of a possible guilty plea have been mixed. Some see it as long-overdue accountability, while others remain bitter, knowing no verdict will restore the billions lost.

Key Highlights:

• BTC surges past $121,000 amid positive regulatory developments in a U.S. strategic Bitcoin reserve and heavy institutional buying.
• Experts predict BTC could hit $200K+ this year, but short-term volatility depends on inflation data and Fed policies.
• Big corporations now dominate BTC demand

The world’s most famous cryptocurrency, Bitcoin, just smashed past $121,000, making traders and investors excited about its future. After dipping below $113,000 on August 5, BTC bounced back strongly over the weekend, proving once more why it’s the king of crypto. 

According to some experts, this jump is thanks to big-money investors, impressive development from the regulatory side, the U.S. government BTC stash, and the fact that fewer new Bitcoins are being created every day. 

Why Did Bitcoin’s Price Shoot Up?

Just a few hours ago, BTC soared above $121,000. At the time of writing, the cryptocurrency is trading at around $121,955 with a 3.46% hike in a day, according to CoinMarketCap. It is currently holding $2.37 trillion in market capitalization.  That’s a huge leap from Wednesday’s low, when the U.S. Federal Reserve hinted it might keep interest rates high for a while. 

Normally, that kind of news would scare investors, but BTC didn’t stay down for long. Instead, it got a boost, fueled by various factors like record-breaking inflows in Bitcoin ETFs, growing demand among institutional investors, and the U.S. government’s pro-crypto stance.

Big companies and investment funds are buying BTC like never before. According to experts, nearly all the recent Bitcoin buys (97%) came from institutions like banks, hedge funds, and corporations, not regular traders. 

Even BlackRock, the world’s biggest asset manager, now holds around 739,361 BTC in its ETF.

Larry Fink, CEO of BlackRock, said that “I’m very bullish on the long-term viability of Bitcoin.”

With only 21 million Bitcoins ever to exist, and just 450 new ones mined each day, heavy demand from these big players could keep pushing prices higher.

Ray Dalio, Billionaire Investor, stated that “BTC is perceived as money, and it is limited in supply. Very easily, all around the world, you can transact with it.”

What Do the Experts Say?

Some analysts believe BTC could surge significantly higher this year, potentially reaching $200,000 or more. 

Matt Hougan from Bitwise believes that with more institutions jumping in and the U.S. economy looking shaky, BTC could double in price. Cathie Wood, a well-known investor, still thinks Bitcoin could hit $1 million in the next five years.

But not everyone agrees. A few early Bitcoin BTC are selling, worried that big banks and corporations are taking over what was meant to be a “people’s currency.” Others, like trader Scott Melker, say this is just part of Bitcoin growing up as more big investors mean more stability, even if it changes Bitcoin’s original rebel spirit.

For now, traders are watching two key price levels: if BTC stays above $117,900, it could race toward its all-time high of $123,000. But if it falls below $116,800, a drop to $110,000 might be next.

Jack Dorsey, Former Twitter CEO, recently stated that“Bitcoin will make the current financial system feel as irrelevant as the fax machine.”

The next big moment for BTC could come when the U.S. releases new inflation data. If inflation is lower than expected, Bitcoin might shoot toward $130,000. But if inflation stays high, prices could dip. Long-term, though, most experts stay bullish. Some predict BTC could swing between $99,000 and $260,000 this year, depending on how much money keeps flowing in from big investors.

Earlier, Strategy’s Michael Saylor affirmed that BTC will make the current financial system feel as irrelevant as the fax machine. Its decentralized nature ensures it cannot be shut down, offering ultimate freedom to users.

However, for BTC to reach its full potential, it must evolve beyond being just a store of value. It needs to be used for everyday payments to maintain relevance and drive mass adoption. The focus should be on building infrastructure that makes BTC a practical currency for daily transactions, not just an investment asset.

Key Highlights

• According to the latest report, China is preparing to launch its first Yuan-backed stablecoin through Hong Kong
• The launch is expected to boost the renminbi’s global reach and counter USD dominance
• Recently, there has been buzz on the internet claiming that China will ban cryptocurrencies

Amid the regulatory shift in the US for the cryptocurrency market, Beijing is preparing to greenlight its first government-backed stablecoin, which is a digital currency pegged to the Chinese yuan (CNY). This comes despite persistent rumors of an expanded crypto ban.

According to the latest report, China’s central bank, the People’s Bank of China (PBOC), is working closely with Hong Kong regulators to introduce a regulated stablecoin framework. The purpose behind this development is to boost the yuan’s global appeal and counter the dominance of U.S. dollar-backed stablecoins like Tether (USDT) and USD Coin (USDC).

Hong Kong, which operates under a separate financial system from mainland China, has already laid the groundwork. On August 1, 2025, the city’s new Stablecoins Ordinance took effect, allowing licensed firms to issue fiat-backed digital tokens. 

Now, Beijing appears ready to leverage this framework to push forward with a renminbi-pegged stablecoin. This is a digital asset designed to facilitate cross-border trade while keeping capital controls intact

Why Now? The U.S. Stablecoin Surge and China’s Fear of Falling Behind

The decision comes as the U.S. accelerates its own crypto adoption. In July, President Donald Trump signed the GENIUS Act, establishing the first federal regulatory framework for dollar-pegged stablecoins. 

Analysts say this has put pressure on China to act in fear of losing influence in the evolving digital finance landscape.

“The U.S. is going all-in on crypto, and China doesn’t want to be left behind,” said Zhiguo He, a finance professor at Stanford University. “There’s a real fear of missing out.”

That fear is justified. Over 99% of stablecoins today are dollar-denominated, reinforcing the greenback’s dominance in global trade. Meanwhile, the yuan’s share in international payments has slipped to just 2.89%, its lowest in nearly two years.

A yuan-backed stablecoin could change that. By enabling faster, cheaper cross-border transactions, China hopes to make the renminbi more attractive to businesses—especially those wary of U.S. sanctions or dollar volatility.

The Hong Kong Experiment with Stablecoin: A Controlled Gateway for Crypto

Unlike Bitcoin or Ethereum, which remain banned in mainland China, stablecoins offer Beijing a way to embrace blockchain innovation without relinquishing control.

Hong Kong is set to be the testing ground. Major Chinese firms, including JD.com and Ant Group, have already applied for stablecoin licenses under the city’s new rules. Their proposal? A digital token backed by the offshore yuan (CNH), which circulates freely outside China’s strict capital controls.

“An offshore yuan stablecoin could serve as a bridge between China and global markets,” said Wang Yongli, former vice president of the Bank of China. “It’s a way to modernize payments without destabilizing the domestic financial system.”

Still, challenges remain. Competing with the entrenched dollar stablecoin ecosystem won’t be easy. As Chen Lin, director of the Centre for Financial Innovation and Development at the University of Hong Kong, put it: “Hong Kong is making efforts, but there’s still a long way to go.”

Crypto Ban Rumors

While China moves forward with its stablecoin plans, rumors of a total crypto ban have resurfaced. Social media posts in May claimed Beijing would criminalize even private crypto ownership, sending Bitcoin briefly below $105,000.

But experts say these fears are overblown. No official PBOC statement has confirmed a new ban, and analysts believe the reports recycle old news from China’s 2021 crackdown.

Instead, Beijing’s focus appears to be on state-controlled digital assets—like the digital yuan (e-CNY), which has processed over 7 trillion yuan ($977 billion) in transactions since its 2020 pilot launch.

“China isn’t banning crypto because it hates blockchain,” said Li Yang, a top economist at the Chinese Academy of Social Sciences. “It’s about control. The goal is to integrate stablecoins and CBDCs in a way that serves national interests.” 

For now, China is taking a measured approach. Only one of the country’s four major state-owned banks is expected to receive an initial stablecoin license, with trials likely limited to business-to-business transactions.

The PBOC has also hinted that this does not mean a broader crypto legalization. Mainland restrictions on Bitcoin and Ethereum remain firmly in place.

Key Highlights

• MetaMask prepares to launch mmUSD stablecoin, according to the latest governance proposal 
• mmUSD will be processed through Stripe’s financial infrastructure and M^0 network
• If approved, stablecoin will be added to Aave v3’s lending markets on Ethereum and Linea. 

MetaMask, the popular Ethereum wallet with more than 30 million users, is reportedly preparing to launch its own stablecoin, MetaMask USD (mmUSD), in partnership with payments giant Stripe, according to the latest governance proposal. 

(Source: Front Runners)

MetaMask’s move is a major push into the $251 billion stablecoin market, to make crypto transactions faster, cheaper, and more accessible.

The proposal, authored by DeFi research firm TokenLogic, shows mmUSD’s potential to become a core liquidity asset across MetaMask’s ecosystem, including its wallet, swap service, and DeFi integration. It will be added to Aave v3’s lending markets on Ethereum and Linea. 

mmUSD will be issued through Stripe’s M^0 network, a regulated platform for on-chain dollar settlements. This will ensure compliance and stability.

Designed as a neutral, high-liquidity base currency, mmUSD is planning to streamline transactions in MetaMask’s products while deepening stablecoin liquidity in DeFi.

If approved, users could supply or borrow mmUSD on Aave v3.

Stripe’s Role in mmUSD’s Stability

Unlike most stablecoins issued by crypto-native firms, mmUSD will be processed through Stripe’s financial infrastructure. This partnership will ensure smoother conversions between fiat and crypto. 

Stripe’s involvement is a game-changer as its global payment rails could reduce transaction costs and settlement times, making mmUSD a practical option for everyday spending, remittances, and DeFi transactions.

The stablecoin will be pegged 1:1 to the U.S. dollar, similar to USDC and USDT, but with the added advantage of MetaMask’s deep integration into the Ethereum ecosystem. 

This could boost its rapid adoption among its existing user base while attracting newcomers wary of crypto’s volatility.

Stablecoins have become the backbone of crypto trading and decentralized finance (DeFi), acting as a bridge between traditional money and blockchain. 

MetaMask’s entry into this space could accelerate mainstream crypto adoption, especially as regulatory clarity improves.

In April 2025, the SEC confirmed that well-backed, dollar-pegged stablecoins are not securities, removing a major hurdle for projects like mmUSD. 

Stripe’s recent $1.1 billion acquisition of stablecoin platform Bridge further reflects its commitment to blockchain-based payments.

Despite the optimism, MetaMask and Stripe face stiff competition from Tether (USDT) and Circle’s USDC, which dominate the stablecoin market. Additionally, users will need compelling reasons to switch from established alternatives.

While a governance proposal has outlined mmUSD’s framework, key details, like launch timing, reserve mechanisms, and cross-chain availability, are still under wraps. 

If successful, the stablecoin could boost Ethereum’s transaction volume and even expand to other chains like Solana, where Stripe already supports crypto payments.

New Wave of Stablecoins Following GENIUS Act’s Approval 

The financial world is undergoing a huge transformation as major banks and corporations race to launch stablecoins following the passage of the GENIUS Act, which established the first comprehensive U.S. regulatory framework for dollar-pegged digital assets.

The legislation’s strict requirements, including 1:1 reserve backing with the U.S. Treasuries, monthly audits, and robust anti-money laundering controls, have given traditional financial institutions the confidence to enter what was once considered crypto’s wild frontier.

Recently, USDe, a yield-generating stablecoin from Ethena Labs, has surpassed FDUSD to claim the spot as the third-largest dollar-backed token, following a 75% market cap increase since mid-July.

Wall Street Goes All-In

Bank of America, Citibank, and JPMorgan are leading the charge, with BofA CEO Brian Moynihan publicly stating the bank is prepared to “hold deposits in stablecoin form” as adoption grows. 

JPMorgan has already deployed JPMD, a deposit token on Coinbase’s Base blockchain that enables 24/7 institutional settlements—a direct challenge to traditional banking hours.

Retail Giants Integrate Crypto Payments

Beyond finance, consumer titans are getting in on the action:

• Amazon is exploring a stablecoin to streamline checkout and loyalty programs
• Walmart is reportedly developing a solution for faster supplier payments
• PayPal has expanded its PYUSD offerings with new yield-bearing features

The GENIUS Act’s dual federal-state oversight and explicit exclusion of stablecoins from securities classification have removed years of regulatory uncertainty. 

Industry analysts note the irony: institutions that once dismissed crypto are now battling to control what could become a $2 trillion market, reshaping global payments, according to the latest report.

As one fintech executive said: “This isn’t about embracing crypto—it’s about surviving the future of money.” With the rules now clear, the race to dominate the stablecoin era has officially begun.