Do Kwon's legal troubles just got messier. His defense team made a costly call by skipping the submission of his personal financial disclosure—a move that's now biting back.

Government prosecutors aren't letting it slide. They're pointing out that Do still hasn't coughed up a chunk of what he owes from losing that SEC case. The penalties are piling up, but the payments? Not so much.

His lawyers are pushing back, though. Their argument? A lot of Do's assets remain locked down—frozen accounts, inaccessible funds, the whole nine yards. Hard to pay fines when you can't touch your money, right?

But here's the thing: the court doesn't seem too sympathetic. This financial statement fiasco might've been avoidable, and now it's adding fuel to an already raging fire. One misstep in the courtroom, one missing document, and suddenly the entire case takes another turn for the worse.