South Korean cryptocurrency entrepreneur Do KwonHe denied the fraud charges in court in the USA. Kwon, the name behind two altcoins named TerraUSD and Luna, is held responsible for a loss of nearly 40 billion dollars in value of these coins in 2022. Kwon, who was extradited to the United States from Montenegro this week, is on trial in Manhattan on nine charges.
Accusations Against Kwon
Kwon, US courtIn his first hearing, he is tried for crimes such as fraud and money laundering. The indictment states that he manipulated investors with misleading statements. Kwon’s TerraUSDHe allegedly claimed to be using an algorithm to keep .
Prosecutors accused investors of these misleading statements Terraform Labs He stated that he focused on his products. Thus, Luna’s value increased to $ 50 billion in the spring of 2022. However, when TerraUSD began to lose value in May 2022, Kwon’s manipulation efforts were insufficient and a major collapse occurred. This is Bitcoin 
$96,525.2 many including cryptocurrencyIt reduced the value of s and caused great chaos in the market.
Legal Process Followed So Far
Kwon, last June US Securities and Exchange Commission He made a $4.55 billion deal with (SEC) and was banned from cryptocurrency transactions. The SEC alleged in 2021 that Kwon misled investors and secretly promoted the value of TerraUSD. Additionally, Kwon, who has been detained in Montenegro since March 2023 on charges of possessing false documents, was handed over to the United States last week.
According to prosecutors, Kwon’s misleading strategies were revealed with the collapse of TerraUSD in 2022. However, Terraform Labs declared bankruptcy at the beginning of this year. Although Kwon denies the accusations, expectations regarding the course of the case remain unclear. The next hearing is scheduled for January 8, 2025.
Kwon, FTX founder Sam Bankman-Fried and CEO of Celsius Network Alex Mashinsky He is among the names prosecuted after the decline in the cryptocurrency market in 2022, along with other cryptocurrency leaders such as.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
