Terraform Labs co-founder Do Kwon appeared in court for the first time on January 2 after being extradited to the United States for trial. However, he still insisted that he was innocent and pleaded not guilty to the criminal charges.
(Reuters) reported that when Do Kwon appeared in a Manhattan court on Thursday, his lawyer Andrew Chesley entered a "not guilty plea" and expressed no intention to apply for bail. The judge then ordered that he remain in custody until his next court date on January 8.
(Inner City Press) reported that Do Kwon appeared in court that day wearing a "gray green sweater" and was accompanied by his lawyer, smiling and seemingly in a relaxed mood.
U.S. prosecutors on Thursday unveiled a nine-count criminal indictment charging Do Kwon with conspiracy to commit fraud, commodities fraud, wire fraud, securities fraud, conspiracy to manipulate markets, and money laundering. The charges are closely tied to his role in the 2022 Terra ecosystem collapse, which rocked the cryptocurrency market and caused global investors to lose $40 billion.
The U.S. Department of Justice issued a statement stating that Do Kwon could face up to 130 years in prison if convicted on all counts.
Prosecutors pointed out in court documents on the same day that Do Kwon used "lies and manipulative deception" to construct a false "financial world" with the intention of misleading investors, users, business partners and government regulators.
In fact, the core product of Terraform Labs does not work as well as Do Kwon claimed. Instead, it uses manipulation to create a seemingly normal and decentralized financial system to attract investors.
In addition to criminal charges, the U.S. Securities and Exchange Commission (SEC) filed a civil lawsuit against Do Kwon as early as February 2023. At the end of March this year, the SEC’s trial against Terraform Labs officially began, but Do Kwon did not appear in court at that time.
In April this year, a jury ruled that Terraform Labs and Do Kwon had misled investors, constituted civil fraud, and were required to bear relevant liability.
According to a subsequent settlement agreement with the SEC, Terraform Labs agreed to pay nearly $4.5 billion in disgorgement and civil penalties to settle the securities fraud civil lawsuit, of which $204 million must be borne by Do Kwon out of his own pocket.
"Charged with 9 counts, with a maximum penalty of 130 years in prison! Do Kwon "firmly pleads not guilty" in court in the US." This article was first published on (Blocker).