According to ChainCatcher, as reported by Cointelegraph, Terraform Labs co-founder Do Kwon has been charged with a new offense: conspiracy to commit money laundering. This is a new charge in the superseding indictment unsealed by the U.S. District Court for the Southern District of New York on January 2. The indictment states that Do Kwon conspired with others, knowing that transactions involving more than $10,000 were derived from illegal proceeds, yet still facilitated these financial transactions.
Previously, Kwon had been charged with 8 felonies for his role in the collapse of the Terra ecosystem in 2022, and was arrested in Montenegro in 2023 for forging travel documents. After a dispute over extradition between the United States and South Korea, Kwon was handed over to the U.S. in December 2024. Currently, Kwon pleaded not guilty to all charges during his court appearance on January 2 and agreed to be detained. It remains uncertain whether a plea agreement will be reached or if a criminal trial will take place.
This case has similarities to that of former FTX CEO Sam Bankman-Fried, who faced additional charges after extradition and was eventually sentenced to 25 years in prison.