Do Kwon Extradited to U.S. to Face Fraud Charges Tied to $40 Billion Crypto Collapse

The Terraform Labs co-founder pleaded not guilty in a Manhattan court after being extradited from Montenegro following an 18-month international manhunt.

Do Kwon, co-founder of Terraform Labs and creator of TerraUSD and Luna cryptocurrencies, faces nine criminal charges including securities fraud, wire fraud, and money laundering conspiracy.
The collapse of TerraUSD and Luna in May 2022 wiped out $40 billion in value, triggering a broader crypto market downturn and investor losses worldwide.
Kwon was arrested in Montenegro in March 2023 while attempting to travel with a fake passport and was extradited to the U.S. on December 31, 2024, after months of legal disputes over competing extradition requests from South Korea and the U.S.
Prosecutors allege Kwon misled investors about the stability and functionality of Terraform's blockchain products, manipulating markets to inflate the value of TerraUSD and Luna.
If convicted on all charges, Kwon faces a potential maximum sentence of 130 years in prison, with his next court appearance scheduled for January 8, 2025.

U.S. Department of Justice