Do Kwon Pleads Not Guilty to Fraud Charges After U.S. Extradition
Do Kwon, founder of the failed Terra Luna crypto ecosystem, pleaded not guilty to fraud charges following his Dec. 31 extradition to the U.S., as reported by Reuters.
Kwon's Terraform Labs created the luna cryptocurrency and the algorithmic stablecoin terraUSD, which collapsed in 2022, resulting in approximately $40 billion in losses. He faces multiple charges including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
Federal prosecutors claim that Kwon misled investors in 2021 regarding the algorithm intended to maintain terraUSD's $1 value, according to the indictment issued on Thursday.
Magistrate Judge Robert W. Lehrburger of the Southern District of New York ordered Kwon to be detained pending a court appearance scheduled for Jan. 8.
Kwon was arrested in Montenegro in March 2023 on charges of passport forgery and has contested extradition to the U.S. for over a year.