Key Takeaways:
- Do Kwon Pleads Not Guilty: Terraform Labs co-founder Do Kwon entered a not guilty plea in a U.S. court following extradition from Montenegro.
- Charges and Trial Progress: Kwon faces nine charges, including fraud and money laundering, with a status conference set for January 8, 2025.
- Global Legal Saga: Kwon’s extradition to the U.S. was approved due to the severity of charges, marking a significant international legal development.
Terraform Labs co-founder Do Kwon pleaded not guilty to nine charges, including securities fraud, wire fraud, and money laundering, during a U.S. court hearing on January 2, 2025.
The charges stem from the collapse of the Terra blockchain ecosystem.
👀 @innercitypress reports that the CEO of Terraform Labs ($LUNA) Do Kwon pleads not guilty in the first hearing since his extradition to the USA🇺🇸.
— Bitcoin.com News (@BTCTN) January 2, 2025
Let us know in the comments below what your thoughts are. pic.twitter.com/SohcxQSVtb
Appearing before Magistrate Judge Robert Lehrburger in New York, Kwon agreed to remain in custody without bail.
A status conference is scheduled for January 8 to facilitate evidence exchange and procedural preparations for trial.
Kwon’s extradition to the U.S. from Montenegro marked a significant milestone in his legal saga, which began in 2023.
On Do Kwon, 3 hours after arraignment Inner City Press live tweeted, now quote by AG Garland: “Do Kwon will now be held accountable in an American courtroom… We secured this extradition despite Kwon’s alleged attempt to cover his tracks by laundering proceeds" https://t.co/GgVACZ1z31
— Inner City Press (@innercitypress) January 2, 2025
Montenegrin Justice Minister Bojan Božović approved the extradition on December 27, 2024, prioritizing the U.S. request over South Korea’s due to the severity of the charges and other factors.
Prime Minister Milojko Spajić confirmed Kwon’s handover on December 31, emphasizing Montenegro’s zero tolerance for financial fraud while supporting legitimate tech innovation.
Previously, Terraform Labs settled with the U.S. SEC in June 2024, agreeing to pay $4.47 billion in restitution, including $204 million in personal penalties for Kwon.
The trial represents a pivotal chapter in the fallout from Terra’s collapse, which has drawn intense global scrutiny.
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