Key Highlights:
- Do Kwon has officially entered a not guilty plea concerning fraud charges after his extradition to the United States on Tuesday.
- Terraform Labs, under Kwon's leadership, launched the Luna cryptocurrency and the stablecoin terraUSD. Both of these assets experienced a collapse in 2022, resulting in losses estimated at $40 billion.
- Federal prosecutors are accusing Kwon of deceiving investors in 2021 regarding the algorithm that was purportedly meant to stabilize the value of the terraUSD.
Kwon is facing a range of charges, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
Indictment Details:
According to the indictment released Thursday, it is claimed that Kwon misled investors about the mechanism underpinning the terraUSD’s dollar peg.
A magistrate judge in the Southern District of New York has mandated that Kwon remains in custody until a hearing set for January 8.
Background:
- Kwon's apprehension occurred in Montenegro due to passport forgery in March 2023, and he has resisted extradition for over a year prior to this recent event.
Further Reading: Craig Wright Receives Suspended Jail Sentence for Contempt of Court
