- TerraForm Labs former CEO Do Kwon has pleaded not guilty for the US fraud charges.
- The co-founder was convicted of several charges including but not limited to money laundering and fraud.
As the Asian world wakes up to Bitcoin reclaiming the $97K mark, other altcoins have also traveled further in the bullish trend. In the past day, in an interesting turn of events, AI tokens took to the spotlight, with market cap surging past $100 billion. Meanwhile, TerraForm Labs’ former CEO, Do Kwon’s US lawsuit, has caught community members by surprise.
Notably, TerraForm Labs’ co-founder was recently extradited to the USA on money laundering and fraud charges. On Thursday, he entered the US Southern District Court of New York to face several allegations of fraud, wire fraud, and money laundering by prosecutors.
However, Do Kwon pleaded ‘not guilty’ to the abovementioned allegations. The updated court statement outlined nine counts of multiple charges surrounding TerraForm Labs, the Terra blockchain, and stablecoin misrepresentations.
The past few months of 2024, saw Do Kwon’s extradition process from Montenegro to the USA. Do Kwon requested a South Korean extradition, which the Montenegrin Supreme Court rejected.
What is the Story Behind the TerraForm Labs’ Do Kwon Vs. US Lawsuit?
The TerraForm Labs’ collapse occurred in May 2022. Two and half years later, the legal battle still continues to convict co-founder and CEO, Do Hyeong Kwon. Several nations including Singapore, Montenegro, and the US have been wired into the lawsuit, with the US government being the core Plaintiff.
Recently, during Q2 of 2024, Do Kwon settled with the SEC after tenacious legal proceedings. The settlement amount was $4.55 billion apart from $80 million in fines. He was further banned by the regulator from participating in crypto activities.
Following this, Do Kwon began the aforementioned requests for extradition to South Korea. The collapse of the TerraUSD stablecoin saw major effects on the market causing quite a scandal, just months after which the FTX collapse occurred in November 2022.
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