Would Kwons Refuses To Be Blatant in the US for Terra LUNA and UST Crash?

Do Kwon, an alleged bitcoin crook, entered a not-guilty plea on Thursday in a New York court on Thursday to face U.S. criminal charges related to the Terra crypto ecosystem’s collapse in 2022, following his extradition from Montenegro earlier this year.

Government hit the 33-year-old shamed tech investor with nine criminal matters, including stocks fraud, wire fraud, commodities scams, and conspiracy to commit money laundering. He agreed Thursday to remain held without bail before U. S. Magistrate Judge Robert Lehrburger, reported.

Kwon founded Terra, a once-sizable crypto ecosystem with apps built around the LUNA token and the TerraUSD ( UST ) algorithmic stablecoin. The job gained acclaim from investors and quickly surpassed Ethereum as the second-biggest bitcoin in the area by the early 2022.

Its local cryptocurrency, LUNA, was in its perfect as one of the best digital assets by business cap. Kwon made a lot of money, very quickly, and even mocked “poor” people on X ( formerly known as Twitter ).

However, in May 2022, Terra crashed, stealing$ 40 billion in investors ‘ money along with it. Following the crash, some crypto projects with exposure to the job eventually declared bankruptcy. This led to a brutal keep business.

The program’s primary product, the UST stablecoin, don’t retain its steady peg to the dollar, resulting in the whole ecosystem collapsing and losing nearly all of its value in a matter of days.

Authorities in both the United States and South Korea then allege that the businessman was a con artist who extorted investors into buying his bitcoin.

” Behind the scenes, key Terra items did not work as Kwon advertised, and were manipulated to create the illusion of a thriving and decentralized economic system in order to lure traders”, Thursday’s prosecution reads.

Kwon was detained in Montenegro last year on suspicion of trying to travel with a fraudulent passport. His attorneys kept him in the country until Tuesday, when he was eventually extradited to the US.