https://deepnewz.com/markets/kwon-pleads-guilty-to-fraud-charges-over-40-billion-loss-faces-130-years-prison-ed7b3399

Do Kwon, the co-founder of Terraform Labs, has pleaded not guilty to nine charges in a U.S. court following his extradition from Montenegro. The charges, including securities fraud, wire fraud, and money laundering, stem from the collapse of the TerraUSD (UST) stablecoin and its linked cryptocurrency, LUNA, which led to an estimated $40 billion loss in May 2022. The indictment alleges that Kwon misled investors about the stability and functionality of Terraform Labs' blockchain products, claiming they were decentralized and reliable. Kwon’s extradition to the U.S. occurred after his arrest in Montenegro in March 2023 while attempting to board a private jet with fake documents. Prosecutors argue that Kwon's actions caused significant harm to the cryptocurrency market and investors worldwide. If convicted, Kwon faces a maximum penalty of 130 years in prison. The unsealed indictment details allegations of market manipulation and deceptive practices. The Terra collapse had ripple effects across the cryptocurrency market, contributing to broader instability. Kwon remains in custody without bail, with a status conference scheduled for January 8, 2025. The case is being prosecuted by the U.S. Attorney's Office in Manhattan, the same office that handled the trial of Sam Bankman-Fried.