Do Kwon Faces Serious Fraud Allegations in US Court – BitRss

South Korean cryptocurrency entrepreneur Do Kwon has denied fraud charges in a US court. Kwon, known for his involvement with TerraUSD and Luna, is accused of being responsible for a near $40 billion loss in value for these altcoins in 2022. Recently extradited from Montenegro, Kwon is facing nine charges in Manhattan.

Charges Against Kwon

Kwon is being prosecuted for crimes such as fraud and money laundering in a US court. The indictment claims he manipulated investors with misleading statements. It is alleged that Kwon used an algorithm to maintain TerraUSD’s peg to one dollar but secretly purchased millions of dollars from a trading company.

Prosecutors stated that these deceptive claims directed investors toward Terraform Labs products, which inflated Luna’s value to $50 billion in early 2022. However, when TerraUSD began to lose value in May 2022, Kwon’s manipulation efforts proved inadequate, leading to a significant crash. This resulted in a drop in the value of many cryptocurrencies, including Bitcoin