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Korean crypto mogul Do Kwon pleads not guilty to U.S. fraud charges

Published: 03 Jan. 2025, 10:41 Updated: 03 Jan. 2025, 13:38

Kwon Do-hyung, center, co-founder of Terraform Labs, is handed over to U.S. authorities in Montenegro on Dec. 31. [MONTENEGRIN POLICE AGENCY]

Korean crypto mogul Do Kwon pleaded not guilty Thursday to criminal fraud charges after he was extradited to the United States from Montenegro earlier this week, according to media reports.

Kwon entered the plea in Manhattan federal court two days after his extradition, The Associated Press and Reuters reported, as he has been facing allegations related to the 2022 collapse of some crypto coins.

A freshly unsealed indictment alleges that Kwon lied to investors from 2018 to 2022 to fool them into pouring money into Terraform Labs, the crypto firm he co-founded, while authorities said investors were harmed by the $40 billion crash of Terraform Labs' cryptocurrency, according to the reports.

His extradition to the United States came nearly two years after Kwon was arrested in Montenegro in March 2023 for traveling on a fake passport.

Kwon, whose full name is Kwon Do-hyung, is a co-founder of the cryptocurrency firm Terraform Labs and was wanted both by Korea and the United States for an investigation and possible indictment on charges connected to the massive crash of TerraUSD and Luna coins run by his company.

Kwon had sought legal action in Montenegro to be repatriated to Korea to face legal proceedings, but the Montenegrin court rejected his appeals.

Yonhap