Terraform Labs co-founder Do Kwon has pleaded not guilty to fraud charges in the United States related to the $40 billion Terra LUNA crash in 2022. Just two days ago, Montenegro authorities extradited him to the United States.

- According to a report from Bloomberg, Do Kwon is facing nine financial charges, including conspiracy to launder money, commodities fraud, and securities fraud.

- The hearing was presided over by Judge Robert Lehrburger on January 2. Despite pleading not guilty, Kwon agreed to remain in custody. The future of the case remains unclear.

- Notably, the Manhattan U.S. Attorney's Office, which will prosecute Kwon, also prosecuted Sam Bankman-Fried (SBF) last year. SBF is currently serving a 25-year prison sentence.

- Kwon's case began in May 2022 when TerraUST and Terra LUNA collapsed, causing $40 billion in losses and triggering a chain of events that led to the collapse of FTX.