Do Kwon, founding father of the failed Terra Luna crypto ecosystem, pleaded not responsible to prices of fraud following his Dec. 31 extradition to the U.S., Reuters reported on Thursday.
Kwon’s Terraform Labs developed the luna cryptocurrency and algorithmic stablecoin terraUSD, which collapsed in 2022 with the lack of an estimated $40 billion. Kwon faces prices that embody securities fraud, wire fraud, commodities fraud and cash laundering conspiracy.
Federal prosecutors allege that Kwon misled traders in 2021 in regards to the algorithm that was designed to take care of stablecoin terraUSD’s worth of $1, in line with Thursday’s indictment.
Justice of the Peace Choose Robert W. Lehrburger for the Southern District of New York ordered Kwon to be detained forward of returning to court docket on Jan. 8.
Kwon was arrested in Montenegro in March 2023 on passport forgery prices, and has been preventing extradition to the U.S. for over a yr.
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