Crypto Executive Pleads Not Guilty to Fraud Charges in Honolulu

Do Kwon, the cryptocurrency entrepreneur behind two digital currencies that saw a $40 billion loss in 2022, pleaded not guilty to U.S. criminal fraud charges after being extradited from Montenegro. The charges, filed by federal prosecutors in Manhattan, include securities fraud, wire fraud, commodities fraud, conspiracy, and money laundering conspiracy.

Kwon, who co-founded Terraform Labs and developed TerraUSD and Luna, entered his plea in a Manhattan federal court. This comes after he agreed to an $80 million civil fine and a ban from crypto transactions as part of a $4.55 billion settlement with the U.S. Securities and Exchange Commission.

Prosecutors allege that Kwon misled investors about TerraUSD in 2021, ultimately boosting the value of Luna to $50 billion by 2022. The crash of TerraUSD and Luna in May 2022 led to broader repercussions in the cryptocurrency market.

Kwon is not the only cryptocurrency mogul facing federal charges. Others include Sam Bankman-Fried, appealing a conviction for stealing $8 billion, and Alex Mashinsky, who pleaded guilty to fraud charges.

This case underscores the importance of transparency and honesty in the cryptocurrency world. Remember, always do your due diligence and research before investing in digital currencies.