In his first court appearance since being extradited to the country, Do Kwon has pleaded not guilty to US fraud charges in connection to the $40 billion collapse of Terra Luna. The founder of the platform and the TerraUSD stablecoin was arrested in Montenegro in March of 2023.
Kwon has officially entered his plea at a court appearance Thursday before US Judge Robert Lehrburger in a New York court, according to a Bloomberg report. Currently, the former cryptocurrency tycoon is charged with nine counts of securities, commodities, and wire fraud.
JUST IN: 🇺🇸 Do Kwon pleads not guilty to US fraud charges over $40 billion Terra collapse.
— Watcher.Guru (@WatcherGuru) January 2, 2025
Also Read: Terra Luna Founder Do Kwon to be Extradited to the US
Do Kwon Appears at First US Court Hearing, Pleads Not Guilty
2025 arrived with as much hope and optimism as the cryptocurrency industry has maybe ever experienced. The asset class had just concluded a landmark year. With two crypto-based ETFs getting approved in the United States and Bitcoin reaching a six-figure price, things had never looked more promising.
Yet, just two days in, one of the sector’s greatest controversies is headed towards a conclusion. After a two-year saga, Do Kwon has officially entered a US courtroom, where he pleaded not guilty to nine different fraud charges. Indeed, Kwon’s plea was in relation to the $40 billion collapse of the company’s TerraUSD stablecoin.
Also Read: Terra LUNA: From Top 10 Crypto to Crashing 99%, Here’s What Happened
Arrested in 2023, Kwon’s extradition has been the topic of discussion for the last two years. Kwon was apprehended for attempting to fly from Montenegro with falsified documents. With South Korea still charging the former crypto mogul, the country had opted to send him to the United States.
The fall of Terra Luna was a blindside swipe to the entire cryptocurrency industry. Its collapse in 2022 preceded the fall of platforms like FTX, reshaping the entire sector. Kwon had owned 92% of the fallen cryptocurrency and will now be prosecuted by the same court that heard FTX founder Sam Bankman-Fried’s case. Indeed, Bankman-Fried was convicted in November of 2023 and is now serving 25 years in prison.