Terraform Labs co-founder Do Kwon appeared in courtroom on Jan. 2 within the US and pleaded not responsible to fraud costs linked to the $40 billion implosion of the TerraUSD (UST) stablecoin, Bloomberg Information reported.
Kwon appeared earlier than US Justice of the Peace Decide Robert Lehrburger in Manhattan and agreed to stay in custody with out bail. He faces 9 costs, together with wire, securities, and commodities fraud, stemming from his alleged position in Terraform Labs’ collapse after the worth of its tokens, LUNA and UST, crashed.
After being arrested in Montenegro in March 2023 whereas trying to journey on a pretend passport, Kwon remained within the nation throughout a tug-of-war between US and South Korean authorities over the place he would face costs. Each nations had accused Kwon of fraud, with South Korea searching for extradition as a result of his citizenship.
In the meantime, Kwon appealed to keep away from extradition to the US, as monetary crime penalties in South Korea are usually much less extreme.
Montenegro’s Constitutional Courtroom rejected the enchantment on Dec. 26 and the nation’s Justice Minister subsequently signed an order to extradite the Terraform Labs co-founder a number of days later.
On Dec. 31, the Montenegrin police transferred Kwon to US authorities on the Podgorica Worldwide Airport.
Awaiting trial
Prosecutors in New York allege Kwon misled buyers concerning the Terra blockchain’s capabilities and adoption charges, claiming his actions immediately contributed to the platform’s catastrophic collapse.
The Manhattan US Lawyer’s Workplace, which efficiently prosecuted FTX co-founder Sam Bankman-Fried final 12 months, is main the case towards Kwon.
Furthermore, Kwon is already dealing with authorized penalties. A US jury discovered him and Terraform Labs liable in a civil fraud case introduced by the Securities and Change Fee (SEC), ensuing in a $4.47 billion settlement. Terraform subsequently filed for chapter.
Kwon’s legal professional declined to remark after the listening to. A follow-up courtroom convention is scheduled for January 8, setting the stage for what could possibly be a high-profile crypto trial within the Southern District of New York.