The co-founder of Terraform Labs was detained in the US after pleading not guilty to nine charges related to fraud on the platform.
Prosecutors in the U.S. government overseeing Do Kwon's criminal case estimate that the Terraform Labs co-founder could potentially have more than a million victims worldwide following the ecosystem collapse.
In a Jan. 6 filing in the U.S. District Court for the Southern District of New York, Acting U.S. Attorney Daniel Gitner informed the court of the procedures for advising Kwon's victims of their rights in the criminal case.
According to the U.S. Attorney's Office, the government will set up a website about the public trial in the Kwon case because other methods of providing victims with their rights are "not feasible."
“While it is difficult to precisely determine the number of Kwon’s victims given the breadth of Terraform’s cryptocurrency transactions and the manner in which these transactions are made (most transactions in these assets occur on currency exchanges and through digital asset wallets or crypto trading accounts without personally identifiable information), the Government estimates that the number of victims in this case exceeds hundreds of thousands of individuals and entities, and potentially exceeds one million,” Gitner said.
Kwon appeared before a U.S. judge for the first time on Jan. 2 after being extradited from Montenegro. He pleaded not guilty to nine charges related to the Terraform fraud and agreed to be held in custody.
The#Terraecosystem crashed in 2022 and was likely one of the events that caused a significant decline in the cryptocurrency market, leading to many firms filing for bankruptcy.
Kwon, one of the people allegedly involved in fraud on the platform, was arrested in Montenegro in 2023 on unrelated charges and remained in the country while the US and South Korea attempted to seek his extradition.
