Do Kwon Pleads Not Guilty to Fraud Charges

Do Kwon, the co-founder of Terraform Labs, has pleaded not guilty to multiple fraud charges in a Manhattan federal court, following his extradition from Montenegro. Prosecutors allege that Kwon misled investors about the stability of the TerraUSD stablecoin, contributing to a $40 billion collapse in 2022 that impacted the entire cryptocurrency market. The charges include securities fraud, wire fraud, commodities fraud, conspiracy, and money laundering, with potential penalties exceeding 100 years in prison if convicted. Kwon had previously settled with the SEC for $80 million without admitting wrongdoing, while the SEC claims he failed to provide truthful disclosures about Terraform's operations. His case is part of a broader crackdown on cryptocurrency fraud in the wake of significant market downturns. Kwon's trial is closely watched, given the ongoing scrutiny of the crypto industry following the collapse of several major firms.