Crypto Bro Do Kwon Extradited to U.S.

Do Kwon Pleads Not Guilty to U.S. Fraud Charges Over Cryptocurrency Collapse

Do Kwon, the co-founder of Terraform Labs, has entered a plea of not guilty to multiple fraud charges in a U.S. federal court. The charges are connected to the 2022 collapse of TerraUSD and Luna, cryptocurrencies that collectively wiped out $40 billion in investor value.

Prosecutors allege that Kwon misled investors by promoting TerraUSD as a stablecoin backed by a computer algorithm, while in reality, its value was artificially supported by undisclosed trading activities. This misinformation reportedly led to massive investments, inflating the value of both TerraUSD and its sister token, Luna. When the system collapsed, it sent shockwaves through the cryptocurrency market, causing widespread financial losses.

Kwon is facing several charges, including securities fraud, wire fraud, commodities fraud, conspiracy, and money laundering conspiracy. The 79-page indictment paints a picture of a calculated scheme to deceive investors and prop up the failing cryptocurrency ecosystem.

The legal proceedings follow Kwon’s extradition from Montenegro to the United States. He was arrested in March 2023 while attempting to leave Montenegro using falsified travel documents. Both South Korea and the U.S. had sought his extradition, but American authorities ultimately secured custody.

Kwon’s case marks a significant chapter in the broader crackdown on cryptocurrency executives following the market downturn in 2022. His next court appearance is scheduled for January 8, 2025, where further proceedings will determine the course of one of the most high-profile cryptocurrency fraud cases to date.

Read more here- https://finance.yahoo.com/news/fallen-crypto-king-kwon-facing-195655773.html