Do Kwon, co-founder of Terraform Labs, pleaded not guilty in a Manhattan court to charges including securities fraud, money laundering, and market manipulation. These allegations stem from the collapse of the TerraUSD stablecoin in 2022, which wiped out billions in investor funds.
Extradition and Maximum Penalty
Kwon was extradited to the U.S. from Montenegro after months of legal disputes. Prosecutors claim Terraform’s products were manipulated to create the illusion of a decentralized system, misleading investors. If convicted on all charges, Kwon could face up to 130 years in prison.Civil and Criminal Consequences
In addition to criminal charges, Kwon and Terraform were previously found liable for civil fraud in a separate SEC case. The ongoing trials underscore the legal and regulatory scrutiny facing key figures in the crypto industry.
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