Do Kwon, co-founder of Terraform Labs, faces an additional money laundering conspiracy charge following his extradition from Montenegro. The U.S. Attorney's Office announced this new charge in a superseding indictment unsealed on January 2 in the Southern District of New York. The indictment alleges that Kwon conspired to facilitate transactions exceeding $10,000, aware that these transactions involved proceeds from unlawful activities. The money laundering charge was not part of the eight felony charges filed against him in March 2023. After being arrested in Montenegro for using falsified documents, Kwon’s legal status remained undecided until December 2024 when he was extradited to the U.S. During his January 2 court appearance, Kwon pleaded not guilty to all charges and agreed to detention. It remains unclear whether U.S. authorities will seek a plea deal or proceed to trial. This case shares similarities with that of former FTX CEO Sam Bankman-Fried, who was also extradited to the U.S. amid legal issues related to his business practices.

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