South Korean crypto entrepreneur Kwon Do-hyeong is set to stand trial in the United States on January 26, 2024, on charges of orchestrating a multi-year fraud scheme related to the collapse of Terraform Labs’ cryptocurrencies. According to a Bloomberg report, the trial date was set by District Judge Paul Engelmayer in New York following Kwon’s extradition from Montenegro in late December 2023.
Kwon, co-founder of Terraform Labs, has pleaded not guilty to the charges, which include commodities fraud, securities fraud, wire fraud, and money laundering conspiracy. The indictment alleges that Kwon defrauded investors between 2018 and 2022, culminating in the devastating 2022 crash of Terraform’s cryptocurrencies, which resulted in over $40 billion in losses globally.
The US Justice Department has stated that if convicted on all counts, Kwon faces a maximum sentence of 130 years in prison. The trial will be a significant event in the ongoing scrutiny of the cryptocurrency industry and its key players.
Kwon’s arrest in Montenegro in March 2023 for traveling on a fake passport marked the beginning of a lengthy legal process. He remained in custody until his extradition to the US on December 31, 2023, nearly two years after his initial apprehension.
