Do Kwon Pleads Not Guilty to Fraud Charges

Do Kwon, co-founder of Terraform Labs, pleaded not guilty in a Manhattan federal court to multiple fraud charges related to the $40 billion collapse of the TerraUSD and Luna cryptocurrencies in 2022. Following his extradition from Montenegro, he faces a total of nine counts, including securities, wire, and commodities fraud, as well as a new count of money laundering. Prosecutors allege that Kwon misled investors about the stability of TerraUSD, falsely claiming it could maintain its peg without external intervention, which ultimately contributed to significant financial losses. Kwon's defense argues the collapse was a result of market dynamics rather than fraudulent activity. If convicted, he could face over 100 years in prison, although actual sentences are typically less severe. His next court date is yet to be scheduled.