Do Kwon: The Crypto Mogul's Downfall

Do Kwon, a South Korean cryptocurrency entrepreneur, pleaded not guilty to U.S. criminal fraud charges after losing an estimated $40 billion from digital currencies TerraUSD and Luna. Prosecutors allege that Kwon misled investors with false claims. He was extradited from Montenegro and faces trial in January.

Do Kwon, the South Korean cryptocurrency entrepreneur at the center of controversy, faced U.S. criminal fraud charges after being extradited from Montenegro. Accused of multiple frauds and money laundering, Kwon pleaded not guilty despite being linked to a $40 billion loss in 2022.

Prosecutors unveiled a nine-count indictment against the 33-year-old, alleging securities and wire fraud linked to his digital currencies TerraUSD and Luna. These charges come after Kwon agreed to an $80 million civil fine and a crypto transaction ban in a previous settlement with the SEC.

Kwon's alleged deceptive claims included misleading investors about a 'Terra Protocol' algorithm, leading to a significant boost in Luna's value despite underlying stability issues. TerraUSD and Luna's eventual crash had ripple effects across the crypto market, paralleling other high-profile cases such as those involving Sam Bankman-Fried and Alex Mashinsky.

(With inputs from agencies.)