Appearance of Kwon in American Courtroom
Do Kwon, co-founder of Terraform Labs, faced the U.S. court on January 2, 2025, in relation to the Terraform crypto fraud case. The case stems from the collapse of Terraform's algorithmic stablecoin UST and blockchain ecosystem.
The legal wrangling between local courts and Kwon's defense team dates back to spring 2023. Terraform Labs filed for Chapter 11 bankruptcy on January 21, 2024, with a U.S. court-approved liquidation plan finalized by June 2024. The SEC initiated securities fraud claims against Do Kwon and Terraform Labs in connection with misleading investors about the stability and risks of the Terra ecosystem.
As of mid-2025, there is no public record of Do Kwon having entered a plea or been sentenced. The case is ongoing, with the next hearing scheduled for January 8. The indictment against Kwon includes nine counts, including conspiracy to commit fraud, money laundering, market manipulation, and securities fraud.
Kwon has pleaded not guilty to the charges. The extradition of Kwon to U.S. authorities was completed by Montenegro on December 31. The case is still being covered by Inner City Press, with the link for the coverage available at https://t.co/G3vwN2mZuS.
A picture related to the coverage can be found at pic.twitter.com/mOWWGlSFrK. Inner City Press will continue to cover the case and live tweet about it.
Background
The SEC and U.S. DOJ have taken enforcement action, consistent with the winding-down of Terraform’s assets and efforts to hold responsible parties accountable. The Singapore International Commercial Court also recognized the Chapter 11 restructuring plan and ordered creditor compliance, highlighting the international legal entanglements of Terraform Labs and its affiliates controlled by Do Kwon.
In summary, Terraform Labs and Do Kwon are defendants in U.S. securities fraud proceedings related to the collapse of their algorithmic stablecoin and blockchain ecosystem. The case is ongoing with no announced plea or sentencing at this time.
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Technology news outlets are following the ongoing U.S. court case against Terraform Labs and Do Kwon, the co-founder accused of fraud in the collapse of Terraform's algorithmic stablecoin UST and blockchain ecosystem. Meanwhile, finance headlines have also reported on the SEC's securities fraud claims against Kwon and Terraform Labs, as well as the international legal entanglements involving the Singapore International Commercial Court and creditor compliance.
