Do Kwon Pleads Not Guilty After Extradition from Montenegro to U.S. Over $40 Billion Crypto Collapse

Jan 2, 2025, 05:50 PM

Terraform Labs co-founder Do Kwon, 33, has been extradited from Montenegro to the United States to face fraud charges related to the $40 billion collapse of the TerraUSD and Luna cryptocurrencies in 2022. Kwon, a South Korean national who fled his country after his crypto empire crumbled, was arrested in Montenegro before being handed over to U.S. authorities. He appeared in federal court in Manhattan, where he pleaded not guilty to charges including securities fraud, wire fraud, money laundering, and conspiracy. Prosecutors allege that Kwon deceived investors about the stability and reliability of TerraUSD, a so-called stablecoin designed to maintain a value of $1. The collapse of TerraUSD and its sister token Luna wiped out billions of dollars—some reports citing as much as $60 billion—from the cryptocurrency market. Kwon is currently detained and is unlikely to receive bail. His next court appearance is scheduled for January 8. Additionally, he faces charges brought by the U.S. Securities and Exchange Commission.