The crypto market is absolutely popping right now. Ethereum looks like it’s in season, and the altcoin crowd is catching the tailwinds. From courtrooms where Do Kwon pleads guilty, to corporate treasuries, big headlines are shaping the market. As always, we’re here to keep you updated. Let’s dive in.
Do Kwon pleads guilty to US fraud charges in $40B collapse
One of crypto’s most infamous names is back in the spotlight.
Do Kwon, the South Korean entrepreneur behind Terraform Labs, pleaded guilty in New York to two U.S. charges: conspiracy to defraud and wire fraud. This marks a stunning turn after he had previously denied wrongdoing in a nine-count indictment earlier this year.
Kwon co-founded Terraform Labs and created TerraUSD and Luna, two digital currencies that collapsed in 2022, wiping out an estimated $40 billion in value.
Prosecutors say Kwon misled investors about TerraUSD’s stability in 2021. The so-called stablecoin was supposed to hold its $1 peg through an algorithm, but when it slipped, he secretly arranged for a high-frequency trading firm to buy up millions of tokens to restore its value. He then claimed the algorithm had done the job.
Those false statements allegedly drove both retail and institutional investors to pile in, pushing Luna’s market value to $50 billion at its peak. By spring 2022, the entire system unraveled.
In court, Kwon apologized and admitted he had withheld key facts from investors. Under his plea deal, prosecutors will push for no more than 12 years in prison, though he faces up to 25 years. Sentencing is set for December 11.
Kwon has already agreed to an $80 million civil fine and a ban from crypto dealings in a $4.55 billion SEC settlement. He’s been detained since being extradited from Montenegro last year and still faces charges in South Korea.
Quick airdrop updates
Staying active in the airdrop space is key. Here’s what’s new:
- Moonbirds now let you earn Yaps on Kaito.
- Dexari completed its Snapshot S0.
- Kamino launched Season 4.
Tom Lee’s Bitmine Immersion plans $20B more for Ethereum
Ethereum’s rally is attracting deep-pocketed buyers.
Tom Lee’s Bitmine Immersion has boosted its fundraising target for ETH purchases by $20 billion, aiming for a total of $24.5 billion. The move is outlined in a federal filing and comes as the company fights to keep its position as the largest corporate holder of Ethereum.
The company is selling common stock at $0.0001 a share, though it hasn’t specified how much of the proceeds will go directly into ETH.
Bitmine’s aggressive buying spree reflects a broader corporate trend. Several public companies are building massive Ethereum treasuries, borrowing from Michael Saylor’s Bitcoin playbook. Some analysts now predict these firms could end up holding 10% of all ETH in circulation.
The impact is already visible. ETH trades just below $4,500, up 50% in a month and more than 70% year-to-date. That’s less than 9% away from its all-time high. Prediction markets now show nearly 80% of traders expecting ETH to top $5,000 before year-end.
Bitmine’s stock is also riding the wave, up 51% in a month and nearly 700% this year.
ALT5 Sigma raising $1.5B for World Liberty Financial
The Trump-backed World Liberty Financial (WLFI) project is getting its first corporate treasury.
ALT5 Sigma announced a $1.5 billion fundraising effort through the sale of 200 million shares at $7.50 each. The deal includes both a direct stock offering and a private placement.
Notably, Eric Trump will join the company’s board, alongside WLFI co-founders Zach Witkoff and Zak Folkman. The plan is to use the funds to build a massive WLFI token reserve.
Market reaction was mixed. The stock dropped nearly 10% on the news but is still up over 19% in the past five days.
Harvard invests $117M in Bitcoin ETF
Bitcoin is heading back to class.
Harvard University’s endowment fund disclosed a $116.7 million investment in BlackRock’s iShares Bitcoin Trust (IBIT). That’s more than its holdings in Nvidia or Google’s parent company, Alphabet.
Harvard bought 1.9 million IBIT shares in Q2, making it the ETF’s 29th-largest holder. Spot Bitcoin ETFs have brought in over $54 billion in net inflows since their January 2024 launch.
Other Ivy League players are also buying. Brown University doubled its IBIT stake to over $13 million. This signals a shift as endowments — typically cautious with ETFs — start warming up to Bitcoin.
BlackRock says no to XRP and SOL ETFs
Despite Ripple settling its SEC case, BlackRock isn’t rushing into XRP or Solana ETFs.
A spokesperson confirmed the firm has no immediate plans for these products, citing limited client demand. Analysts like Nate Geraci thought BlackRock might expand, but the asset giant seems content sticking with Bitcoin and Ethereum ETFs for now.
BlackRock executives say other crypto assets don’t yet meet their internal criteria for ETFs. The company doesn’t expect to revisit the idea anytime soon.
Check the recent Chainlink price action here.
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Final thoughts
Crypto news this week has been wild. Do Kwon pleads guilty to massive fraud. Ethereum buying sprees are setting the tone for the market. Trump-backed WLFI is making corporate treasury moves. Harvard is stacking Bitcoin. And BlackRock is keeping its ETF list tight.
It’s ETH season right now, and the altcoin market is in the slipstream. If these headlines are any indication, the rest of the year will be just as eventful.
If you enjoyed this blog, you may want to check our other crypto news updates.
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