Do Kwon pleads not guilty to US charges with maximum penalty of 130 years in prison

6 days ago 4

The co-founder of Terraform Labs appeared successful national court.
He faces perchance up to 130 years successful prison.
The conflict implicit his extradition yet came to an extremity successful December.

Do Kwon pleaded not blameworthy to 9 counts of fraud successful a New York national tribunal connected Thursday, according to Reuters.

The Department of Justice alleges that the co-founder of Terraform Labs deliberately misrepresented his crypto empire to investors and customers, including however his alleged stablecoin TerraUSD operated, according to a recently unsealed indictment.

“We secured this extradition contempt Kwon’s alleged effort to screen his tracks by laundering proceeds of his schemes,” Attorney General Merrick Garland said successful a statement.

If convicted connected each charges, Kwon faces a maximum punishment of 130 years successful prison, according to the DOJ.

His lawyers did not instantly respond to a petition for comment.

Extradition battle

Kwon’s quality successful New York follows an almost-two-year-long quality implicit his extradition from Montenegro.

In March 2023, Montenegrin authorities arrested the erstwhile crypto mogul successful a backstage pitchy aft a six-month planetary manhunt. He travelled with a fake Costa Rican passport.

He was slated to alert to the metropolis of Dubai successful the United Arab Emirates, which doesn’t person an extradition pact with the US.

The US and his autochthonal South Korea battled implicit which state would prosecute Kwon.

In December, the US finally won out, and the Terraform Labs co-founder arrived successful the States connected New Year’s Eve, said the DOJ.

TerraUSD

When crypto was booming successful 2021 and aboriginal 2022, Kwon was 1 of the industry’s biggest stars.

His stablecoin, TerraUSD, had a circulating proviso of astir $19 cardinal astatine its height, according to CoinGecko.

And a linked cryptocurrency called Luna was worthy much than $40 billion.

“I americium the maestro of stablecoins,” Kwon posted connected X successful May 2022.

However, conscionable days later, TerraUSD depegged from the US dollar, and Kwon’s crypto empire abruptly collapsed.

Although Kwon tried to resuscitate Terraform Labs, helium yet saw the penning connected the wall.

The DOJ alleges that helium tried to launder much than $60 cardinal of investors’ wealth successful September to wage for his and his company’s expenses.

Terraform Labs filed for Chapter 11 bankruptcy successful January 2024.