Do Kwon, the crypto entrepreneur, is set to appear in court for fraud charges after being extradited from Montenegro this week
New York: So, Do Kwon is finally in the U.S. to face some serious charges. This guy was behind those cryptocurrencies that went belly up, costing investors a whopping $40 billion back in 2022. He’s due in court today after being extradited from Montenegro.
Federal prosecutors in Manhattan have hit him with a bunch of charges, including securities fraud and wire fraud. Kwon co-founded Terraform Labs, which created the TerraUSD and Luna currencies. He’s been denying any wrongdoing, though.
Last year, he agreed to pay an $80 million fine and promised to stay out of crypto transactions as part of a settlement with the SEC. But now, he’s got to face the music in court at 12:30 p.m. EST.
Back in April, a jury found him and Terraform liable for defrauding investors. His lawyer claimed they were honest about their products, even when things went south. But Kwon wasn’t even there for that trial since he was stuck in Montenegro.
The SEC says he misled investors about how stable TerraUSD was supposed to be. It was meant to hold a value of $1, but we all know how that turned out. The whole mess with TerraUSD and Luna dragged down other cryptocurrencies too, causing a real shake-up in the market.
At just 33, Kwon is one of several crypto big shots facing federal charges after the market crash. Remember Sam Bankman-Fried? He’s appealing his conviction for stealing billions from customers. And Alex Mashinsky from Celsius Network just pleaded guilty to fraud last month. It’s a wild time in the crypto world!
