Official announcements or legal records regarding extradition

Do Kwon Pleads Not Guilty to Fraud Charges, Faces 130 Years Over $40 Billion Terra Collapse

Jan 2, 2025, 07:15 PM

Do Kwon, the co-founder of Terraform Labs and a South Korean cryptocurrency entrepreneur, has pleaded not guilty to nine counts of fraud and money laundering in a New York federal court. Extradited from Montenegro on December 31, 2024, Kwon faces charges related to the $40 billion collapse of the TerraUSD stablecoin and its associated cryptocurrency, Luna, in May 2022. The indictment, spanning 79 pages, alleges that Kwon misled investors about the stability of TerraUSD, falsely claiming that its value was maintained by an algorithm, while secretly orchestrating market manipulation. Prosecutors also accuse Kwon of laundering proceeds from his schemes and misrepresenting Terraform's blockchain products. Judge Robert Lehrburger presided over the hearing, during which Kwon, through his lawyer, did not request bail. If convicted on all charges, Kwon could face a maximum sentence of 130 years in prison. His next court appearance is scheduled for January 8, 2025.