Terraform Labs Co-Founder Do Kwon Pleads Not Responsible in US Court docket

Do Kwon, the co-founder of Terraform Labs, has pleaded not responsible to United States fraud fees associated to the $40 billion Terra LUNA crash in 2022. Solely two days in the past, the Montenegro authorities extradited him to the U.S.

In line with a Bloomberg report, the troubled co-founder faces 9 financial-related fees, together with cash laundering conspiracy, commodities fraud, wire, and securities.

Do Kwon Pleads Not Responsible

The U.S. Justice of the Peace Choose Robert Lehrburger presided over the court docket listening to, which was publicized on January 2nd. Though pleading not responsible by his lawyer, the South Korean fugitive agreed to be detained. Whether or not the court docket will contemplate Kwon’s plea deal or progress to a prison trial stays unsure.

Notably, the U.S. Legal professional’s workplace in Manhattan, which can prosecute the troubled Terraform Labs co-founder, was additionally behind the prosecution of FTX co-founder Sam Bankman-Fried (SBF) final 12 months. SBF, on his half, is at the moment serving a 25-year jail time period over the cataclysmic FTX crash in late 2022.

As of March 2023, Kwon confronted eight counts of financial-linked violations. Nevertheless, U.S. Legal professional Damian Williams acknowledged in a court docket doc that the Terraform Labs’ government conspired with a number of entities to commit cash laundering. Consequently, Kwon at the moment faces 9 fees, significantly greater than SBF’s seven counts.

A Two-12 months-Previous Case

Kwon’s authorized troubles date again to Could 2022, when Terraform Labs’ flagship merchandise, TerraUST and Terra LUNA, crashed. It precipitated a $40 billion meltdown within the crypto market, triggering a series of occasions that led to FTX’s crash later that 12 months.

Kwon has been on the run ever since. Final 12 months, Montenegro authorities apprehended the Terraform Labs co-founder whereas he was making an attempt to take a flight to Dubai utilizing a faux passport. He spent 4 months in jail for utilizing a false ID within the nation.

Across the identical time, authorities in South Korea and the U.S. requested Kwon’s extradition. Each international locations acquired into a back-and-forth extradition battle over Kwon. Finally, the Montenegro authorities disclosed in late December 2024 that the troubled crypto determine had been extradited to the U.S. to face fraud fees.