PANews reported on January 3rd that according to Cointelegraph, Terraform Labs co-founder Do Kwon was charged with a new crime: money laundering conspiracy. This is a new charge in the superseding indictment unsealed by the U.S. District Court for the Southern District of New York on January 2nd. The indictment pointed out that Do Kwon conspired with others and facilitated these financial transactions despite knowing that transactions of more than $10,000 involved illegal proceeds.
Previously, Kwon had been charged with eight felonies for his role in the collapse of the Terra ecosystem in 2022, and was arrested in Montenegro in 2023 for forging travel documents. After an extradition dispute between the United States and South Korea, Kwon was transferred to the United States in December 2024. Currently, Kwon pleaded not guilty to all charges when he appeared in court on January 2 and agreed to be detained. Whether a plea agreement will be reached or a criminal trial will be entered remains uncertain.
The case bears similarities to that of former FTX CEO Sam Bankman-Fried, who was charged with additional charges following extradition and ultimately sentenced to 25 years in prison.