Terraform co-founder Do Kwon pleads not guilty in US court
Do Kwon, co-founder of Terraform Labs, appeared in a US court on January 2, 2025, pleading not guilty to charges including securities fraud, wire fraud, money laundering, and commodities fraud.
The hearing, held in the Southern District of New York before Magistrate Judge Robert Lehrburger, marked Kwon's first court appearance following his extradition from Montenegro.
He agreed to remain in custody without bail as legal proceedings begin.
The charges are tied to Kwon's alleged role in the collapse of the Terra (CRYPTO:LUNA) ecosystem, which resulted in significant investor losses.
Prosecutors accuse him of orchestrating schemes to defraud cryptocurrency purchasers.
A status conference is set for January 8, 2025, where both sides will discuss evidence and prepare for trial.
Kwon's extradition to the US was approved by Montenegro’s Minister of Justice, Bojan Božović, on December 27, 2024.
The decision followed competing requests from South Korea, Kwon’s home country, and considered the gravity of his alleged crimes.
"Our nation welcomes innovation and legitimate crypto, AI, and other tech entrepreneurs — but we have zero tolerance for fraud," stated Montenegrin Prime Minister Milojko Spajić, commenting on the case.
This development follows Terraform Labs’ settlement with the SEC in June 2024.
The company agreed to pay $4.47 billion, including $204 million in penalties linked to Kwon’s actions.
This marked a significant milestone in the broader legal saga surrounding Kwon and the Terra project.
