- Terraform Labs Co-founder pleads guilty to defrauding investors.
- Markets react positively to the US latest consumer price data on Tuesday.
- US banks urge Congress to close a major loophole in the Genius Act.
You missed what happened in crypto yesterday? Don’t worry, we’ve got you covered!
Terraform Labs Founder Pleads Guilty
Terraform Labs co-founder Do Kwon pleaded guilty to two counts of wire fraud and conspiracy to defraud, waiving his right to a trial on these charges.
The plea agreement, reported on August 12, 2025, by the US District Court in the Southern District of New York, includes $19 million in financial penalties and a potential prison sentence of up to 25 years if served consecutively, though prosecutors will reportedly recommend no more than 12 years.
Kwon’s sentencing is set for December 11, 2025. Initially indicted in March 2023 for multiple charges, including securities fraud and money laundering. He was extradited from Montenegro and had previously pleaded not guilty.
According to Inner City Press, Paul A. Engelmayer said
“It will be up to me to decide what a just sentence for you would be”
Why Is The Crypto Market Up Today?
Crypto and the US stock market reached record highs on Tuesday, driven by U.S. consumer price data that heightened expectations for a Federal Reserve interest rate cut in September. Additionally, a trade war truce between Washington and Beijing boosted investor confidence.
As per the US Labor Dept, the consumer price index saw an uptick of 2.7%.
Ethereum rallied more than 8% in the past 24 hours, breaking above $4,600 and approaching its all-time high. This has been fueled by record futures open interest and strong inflows into Ether-linked ETFs.
Bitcoin is trading near $119,000, with traders now targeting $130,000–$137,000 as the next major milestones.
US Banks Urges Congress To Close Stablecoin Loophole
Several major U.S. banking groups, led by the Bank Policy Institute (BPI), are urging lawmakers to tighten new stablecoin regulations, warning that a loophole in the GENIUS Act could destabilize the banking system.
Under the Genius Act, which was signed into law by Donald Trump, the stablecoin issuers are prohibited from giving interests to the holders. However, there is no explicit mention of cryptocurrency exchanges also being held back from giving the same to its users. This could hurt bank deposit inflows. These deposits allow banks to issue loans.
