Do Kwon faces money laundering charge in superseding indictment

Terraform Labs co-founder Do Kwon has been hit with an additional charge of money laundering conspiracy following his extradition from Montenegro, according to a superseding indictment unsealed on January 2.

Kwon, who already faced eight felony charges in 2023, is now accused of conspiring with others to launder money.

The U.S. Attorney's Office in the Southern District of New York alleges that Kwon facilitated transactions of over $10,000, knowing the funds were linked to unlawful activity.

This money laundering charge was not part of the original indictment filed in March 2023.

It was added later, under seal, in May 2024, and was unsealed after Kwon's court appearance in January.

The Terraform co-founder has been at the center of the 2022 collapse of the Terra ecosystem.

He was arrested in Montenegro in 2023 for using falsified travel documents.

Following a prolonged extradition dispute between the U.S. and South Korea, Kwon was handed over to U.S. authorities in December 2024.

On January 2, Kwon appeared in court and pleaded not guilty to all charges.

He agreed to remain in detention while awaiting further legal proceedings.

It is still uncertain whether U.S. authorities will pursue a plea deal or proceed to trial.

Kwon's case mirrors that of former FTX (CRYPTO:FTX) CEO Sam Bankman-Fried, who was extradited from the Bahamas to face charges in the U.S.

Bankman-Fried was convicted of seven felony counts and sentenced to 25 years in prison, though he has filed an appeal.

Changpeng Zhao, former CEO of Binance, also faced legal challenges and pleaded guilty to one charge, serving four months in prison in 2024.