Do Kwon, founder of Terraform Labs which developed the luna cryptocurrency and stablecoin terraUSD, pleaded not guilty to charges of fraud after being extradited to the United States. The charges arise from the collapse of terraUSD in 2022, which resulted in a loss of approximately $40 billion. Prosecutors accuse Kwon of misleading investors in 2021 about the algorithm intended to maintain the stablecoin's dollar peg. Kwon faces multiple charges including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. Following his extradition, Magistrate Judge Robert W. Lehrburger ordered Kwon to be detained ahead of a court appearance on January 8. Kwon was initially arrested in Montenegro in March 2023 on passport forgery charges and had resisted extradition for over a year.

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