Terraform Labs’ Do Kwon pleads not guilty to fraud over extradition to US: Reuters

Do Kwon, founder of the failed Terra Luna cryptocurrency ecosystem, He pleaded not guilty Charged with fraud after him December 31 extradition To the United States, according to what Reuters reported on Thursday.

Kwon’s company Terraform Labs developed the Luna cryptocurrency and Stablecoin algorithm TeraUSD, which It collapses in 2022 With a loss estimated at about $40 billion. Kwon faces charges including securities fraud, wire fraud, commodity fraud, and money laundering conspiracy.

Federal prosecutors allege that Kwon misled investors in 2021 about the algorithm that was designed to maintain the $1 value of the stablecoin terraUSD, according to the indictment released Thursday.

Judge Robert W. Lerberger for the Southern District of New York ordered Kwon held in custody before his return to court on January 8.

Kwon was arrested in Montenegro in March 2023 on passport fraud charges, and has been fighting extradition to the United States for more than a year.

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