Terraform Labs co-founder Do Kwon appeared before a US magistrate on Jan. 2, 2025, and pleaded not guilty to the charges in the first legal hearing for the former tech executive since his extradition to the US.
The embattled crypto founder appeared before US Magistrate Judge Robert Lehrburger of the Southern District of New York in Manhattan on Thursday afternoon to submit his plea and agreed to be held without bail.
The former tech executive faces nine counts of various charges, including securities fraud, wire fraud, money laundering charges and commodities fraud, for his role in the collapse of the Terra ecosystem.
A status conference is set for Jan. 8, 2025, for the defense and the prosecution to share evidence and discuss motions leading into the trial.
The hearing marks a milestone in the legal saga of the former tech executive, which has taken several turns since 2023, as Montenegrin court officials weighed extraditing the Terraform co-founder to the United States or his homeland of South Korea.
Indictment against Do Kwon. Source: Court Listener
Related: Montenegro court rejects Do Kwon’s extradition appeal
Do Kwon extradited to the United States
Legal authorities in Montenegro previously concluded that the Terraform Labs co-founder met the criteria to be extradited to either the US or South Korea to stand trial.
However, on Dec. 27, Montenegrin Minister of Justice Bojan Božović approved Kwon’s extradition to the US.
In a translated written statement, Montenegro’s Ministry of Justice determined the former crypto executive should be extradited to the US after considering several factors. These factors included:
“The gravity of the criminal acts, the place of execution, the order of submission of the request, the citizenship of the requested person, the possibility of further extradition to another country, as well as other circumstances.”
On Dec. 31, Montenegrin Prime Minister Milojko Spajić confirmed that Kwon was in US custody.
“Our nation welcomes innovation and legitimate crypto, AI and other tech entrepreneurs — but we have zero tolerance for fraud,” the prime minister wrote following the handoff to US authorities.
Terraform Labs previously settled a lawsuit with the US Securities and Exchange Commission in June 2024 — agreeing to pay the agency $4.47 billion, which included $204 million in penalties for the former executive.
Magazine: How Shibtoshi gambled 37 ETH and became a Shiba Inu billionaire