Toby Morgan - Bitcoin Info News

Do Kwon, the Terraform Labs founder, has pleaded not guilty to fraud charges in a U.S. federal court following his extradition from Montenegro. Key Takeaways:- Terraform Labs founder Do Kwon pleaded not guilty to fraud and money laundering charges in a U.S. federal court.- If convicted on all charges, Kwon faces up to 130 years in prison, with his next court appearance set for January 8. Federal prosecutors in Manhattan unsealed a superseding indictment on January 2, accusing the Terraform Labs founder of conspiracy to commit money laundering and fraudulent financial transactions. U.S. Attorney Damian Williams alleged that Kwon knowingly facilitated illegal transactions exceeding $10,000 on the Terraform Labs platform, claiming they involved proceeds of illicit activities. The U.S. Securities and Exchange Commission (SEC) alleges that their collapse caused a $40 billion loss in the cryptocurrency market. The SEC sued Kwon and Terraform Labs in February 2023, accusing them of violating federal securities laws and defrauding investors by misrepresenting the stability of their products. The Terraform Labs founder was arrested in Montenegro in March 2023 on charges of passport forgery. Both the United States and South Korea submitted extradition requests, but U.S. authorities ultimately gained custody. At his January 2 hearing in Manhattan federal court, Kwon's attorney, Andrew Chesley, entered a not-guilty plea on his behalf. The court presided over by Magistrate Judge Robert Lehrburger, ordered Kwon to remain in custody, as no bail request had been made. Kwon’s next court appearance is scheduled for January 8. If convicted of all charges, he faces a maximum sentence of 130 years in prison, according to the U.S. Department of Justice. The extradition marks a significant development in Kwon’s legal troubles, which also include civil fraud charges brought by the SEC. A jury found Kwon and Terraform liable in April 2023, ruling they misled investors about the stability of their digital assets. Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.

Author: Toby Morgan

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