PANews January 3 news, according to Cointelegraph, Terraform Labs co-founder Do Kwon has been additionally charged with a new crime: conspiracy to commit money laundering. This is an added 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 exceeding $10,000 involved illegal proceeds, yet still facilitated these financial transactions.
Previously, Kwon was charged with 8 felonies due to his role in the collapse of the Terra ecosystem in 2022, and was arrested in Montenegro in 2023 for forging travel documents. After extradition disputes between the U.S. 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 deal will be reached or if he will proceed to criminal trial.
This case bears similarities to that of former FTX CEO Sam Bankman-Fried, who faced additional charges after extradition and was ultimately sentenced to 25 years in prison.