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Do Kwon Pleads Not Guilty to Fraud Charges in Manhattan
The Terraform Labs founder was extradited from Montenegro earlier this week.
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Do Kwon, co-founder of Terraform Labs and a key developer of TerraUSD and Luna, pleaded not guilty to fraud charges in the Manhattan Court following his extradition earlier this week from Montenegro after a lengthy court battle.
What’s The Scoop?
- The Charges: Do Kwon is currently facing allegations of securities fraud, wire fraud, commodities fraud, and money laundering conspiracy.
- Misleading Investors: Prosecutors claim that Do Kwon misled investors on how TerraUSD’s stability worked which led to the collapse in price of Luna and TerraUSD. An estimated ~$40B was lost in 2022 from the collapse of Terra and their 2 flagship tokens.
Bankless Take:
The collapse of Terra will go down in crypto history as one of the biggest collapses of all time. Many users who trusted Do Kwon and his vision for Terra lost hundreds if not thousands of dollars due to the fall of TerraUSD and Luna. This case will serve as a reminder of the need for regulatory scrutiny and the necessity for transparency. With SBF behind bars and Do Kwon facing serious repercussions, hopefully, this will send a message to bad actors that their actions have consequences.