Cryptocurrency Mogul Do Kwon Pleads Not Guilty to Fraud Charges

South Korean crypto entrepreneur Do Kwon, the mind behind TerraUSD and Luna, pleads not guilty to U.S. fraud charges after extradition from Montenegro. Accused of misleading investors and propping up TerraUSD's value with deceptive practices, Kwon faces multiple fraud charges and conspiracy indictment.

South Korean cryptocurrency entrepreneur, Do Kwon, responsible for two digital currencies that collapsed with a $40 billion loss in 2022, pleaded not guilty to fraud charges in the U.S. Extradited from Montenegro, Kwon faces multiple counts of fraud and conspiracy related to the TerraUSD and Luna currencies.

Kwon, who co-founded Terraform Labs and is behind TerraUSD and Luna, faces additional charges of money laundering conspiracy, as per an updated indictment. In a Manhattan court, he entered his plea before Magistrate Judge Robert Lehrburger, following a previous settlement with the SEC involving a substantial fine and trading ban.

Prosecutors allege Kwon falsely assured investors of TerraUSD's stability, leading them to invest heavily into Terraform products, significantly boosting Luna's value. Despite the initial price surge, the currencies crashed in May 2022, causing widespread market disruption. Kwon, detained in Montenegro, still faces legal battles over his alleged deceptive practices.

(With inputs from agencies.)