Terraform Labs co-founder Do Kwon has pleaded “not guilty” to the numerous criminal charges levied against him in the United States. This includes securities fraud and money laundering conspiracy, all brought upon him by federal prosecutors in Manhattan. Since the crypto firm plunged in 2022, Kwon has been accused of playing a major role in misleading investors. Do Kwon Misled Crypto Investors He failed to reveal the true state, stability, and security of the US dollar-pegged stablecoin TerraUSD. Instead, he informed unsuspecting investors that TerraUSD’s price slip could be addressed by an algorithm known as the “Terra Protocol.” To cover up for his deceit, Kwon allegedly allied with a high-frequency trading firm to inject millions into the ecosystem to sustain TerraUSD’s value artificially. Unfortunately, it did not turn out as he expected. TerraUSD crashed intensely and left the broader cryptocurrency industry in a huge deficit. In other words, it rippled over and led to the devaluation of Luna and widespread disruptions across the cryptocurrency market. Do Kwon’s Extradition Causes a Ruckus So far, the Terraform Labs executive has been faced with a series of legal proceedings. A few back and forth have occurred in the past few months concerning his extradition. While he committed fraud in South Korea, Kwon was arrested in Montenegro for traveling on a fake passport. Hence, many discussions have been held about his extradition. Last week, Montenegro’s Constitutional Court reportedly dismissed his appeal , citing some legal inconsistencies. For background, Do Kwon appealed his extradition to Montenegro and accused the court of procedural unfairness and violations of his rights. Montenegro Court Rules in Favour of US In the following days, Montenegro’s Justice Minister, Bojan Božović, signed off on Kwon’s extradition in favor of the US. The authorities have devoted time and resources to evaluating requests from both the United States and South Korea. As part of this review, factors like the seriousness of the crimes and the order of requests were considered. Do Kwon’s extradition add to the growing list of legal actions levied on top crypto leaders? Former FTX CEO Sam Bankman-Fried is serving his 25-year jail term at a federal prison in Mendota, California. Though he pleaded “not guilty,” his conviction could lead to an extension of his prison sentence. The post Terraform’s Do Kwon Pleads Not Guilty to Fraud Charges In US appeared first on TheCoinrise.com .
