Do Kwon Denies Fraud Charges After Being Extradited to the US
Do Kwon, the founder of the failed crypto project Terra Luna, pled not guilty to fraud charges after his extradition to the United States, where he faces several serious accusations.
Key Points:
- Do Kwon pled not guilty to fraud charges after being extradited to the U.S. on Tuesday.
- His company, Terraform Labs, created the luna cryptocurrency and terraUSD stablecoin, which collapsed in 2022, incurring losses of about $40 billion.
- U.S. federal prosecutors claim that Kwon deceived investors in 2021 regarding the algorithm intended to keep terraUSD's value pegged at $1.
Kwon, who headed the unsuccessful Terra Luna crypto initiative, denied the fraud allegations subsequent to his extradition on December 31.
Kwon has been charged with securities fraud, wire fraud, commodities fraud, and conspiracy to launder money. He was detained by Magistrate Judge Robert W. Lehrburger in New York, with a court appearance scheduled for January 8. Kwon's legal troubles began after he was arrested in Montenegro in March 2023 for passport fraud, and he has been contesting his extradition for over a year.
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