BTC $71,807
2026 Bull Run Is Building Start trading with 5% OFF all fees
Sign Up Now
BTC $71,807
Bull Run 2026 | 5% Off Fees Open your Binance account today
Sign Up

Terraform’s Kwon Hit With Fresh Money Laundering Charge After US Extradition

SEC alleges Terra founder tried to cover illicit gains through untraceable digital transactions

  • Do Kwon faces new money laundering conspiracy charge following Montenegro extradition.
  • US Attorney’s Office alleges transactions exceeding $10,000 involving illegal proceeds.
  • New charge adds to existing eight felony counts from 2023 indictment.
  • Superseding indictment unsealed on January 2, 2024 in Southern District of New York.
  • Prosecution claims Kwon knowingly processed proceeds from illicit activities.

Do Kwon’s Legal Troubles Mount with New Money Laundering Charge

- Advertisement -

The United States Department of Justice has expanded its case against former Terraform Labs executive Do Kwon, adding money laundering conspiracy to his existing eight felony charges. The development follows Kwon’s extradition from Montenegro, where he had been detained.

Details of the New Charge

According to the superseding indictment filed by US Attorney Damian Williams in the Southern District of New York, Kwon allegedly:

  • Processed transactions exceeding $10,000
  • Knowingly handled proceeds from illegal activities
  • Coordinated with other individuals in the scheme

Background Context

The new charge supplements the 2023 indictment, which included:

  • Securities fraud
  • Wire fraud
  • Market manipulation

Terraform Labs, under Kwon’s leadership, created the Terra/Luna ecosystem – a cryptocurrency network that suffered a catastrophic collapse in May 2022, resulting in approximately $40 billion in losses for investors. The algorithmic stablecoin system (a cryptocurrency designed to maintain a fixed value through automated supply adjustments) failed to maintain its dollar peg, leading to a market-wide cryptocurrency selloff.

- Advertisement -

✅ Follow BITNEWSBOT on Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -
Ad
Altseason Is Loading. Don't watch from the sidelines.
SOL $90.51
DOGE $0.0963
LINK $9.02
SUI $1.00
5% off fees when you sign up
Start Trading
Ad
Pay Less on Every Trade. For Life.
$10K/mo volume Save $60/yr
$50K/mo volume Save $300/yr
$100K/mo volume Save $600/yr
5% off all trading fees when you sign up
Claim Your Discount

Latest News

KOSPI’s $2T Daily Loss Erases S.Korea Entire GDP, NPS Assets

South Korea's KOSPI index fell more than 8% on "Black Thursday," triggering a 20-minute...

37-Year-Old Integer Overflow Chains to Root OpenBSD 7.9

Security firm Calif published a local privilege escalation exploit that achieves root access on...

MSCI finalizes rule booting Bitcoin firms from indexes

MSCI finalized a rule change classifying companies as non-operating firms, effective Nov. 30, using...

Strategy urges MSCI to withdraw new index eligibility framework

Strategy asks MSCI to withdraw a proposed eligibility framework it calls discriminatory and arbitrary. The...

OpenAI agent stole testnet ETH via public recovery phrase

OpenAI disclosed that one of its AI agents stole testnet ETH from an unauthorized...

Must Read

Forex Trading Vs Crypto Trading: Which One Should You Choose?

So you're trying to decide between two types of trading: Forex and cryptocurrency.Forex trading is the big player in the trading world, with lots...
Ad
Altseason Is Loading. These 4 coins are trending right now.
SOL $92.12
DOGE $0.0950
LINK $9.02
SUI $1.02
5% off spot fees when you sign up
Start Trading