Terraform Labs founder Do Kwon has pleaded not guilty to charges of commodity fraud, securities fraud, wire fraud and money laundering conspiracy involving crypto investments through his company. The scandal cost investors $40 billion and if convicted, Do Kwon faces up to 130 years in prison.
The not guilty plea was recorded in a Manhattan court yesterday. He was extradited from Montenegro to the United States on January 1 after being arrested by Montenegrin authorities in 2023.
After the collapse of this investment scheme, Do Kwon fled to Singapore. To bring him to justice, South Korean authorities have requested the help of Interpol. He was arrested with another suspect after he was found using false documents while trying to fly to Dubai.
Last year, Sam Bankman Fried, who was involved in the FTX fraud, was sentenced to 25 years in prison by a court in New York. SBF was found guilty on seven counts of money laundering and online fraud involving losses of up to $8 billion.