Crypto Mogul Faces Justice: Do Kwon's High-Stakes Court Battle

Do Kwon, co-founder of Terraform Labs, faces U.S. court on charges of fraud and conspiracy. He allegedly misled investors about stablecoin TerraUSD. Kwon's case is part of a broader crackdown on crypto leaders after a market slump. He has denied wrongdoing and settled with the SEC.

Do Kwon, the South Korean entrepreneur behind digital currencies TerraUSD and Luna, has been extradited to the U.S. to face charges of criminal fraud. Kwon is accused of manipulating market prices and misleading investors, causing losses estimated at $40 billion in 2022.

An updated indictment alleges new charges of money laundering conspiracy. Kwon previously settled with the SEC, agreeing to pay an $80 million fine and cease crypto transactions. At the core of the issue were claims that Kwon used deceptive practices to bolster TerraUSD's stability.

The crash of TerraUSD and Luna in May 2022 led to widespread turmoil in the cryptocurrency market. Kwon's trial is among several high-profile cases against cryptocurrency executives as regulators crack down on fraud within the sector.

(With inputs from agencies.)