Terraform Labs Co-Founder Do Kwon Pleads Not Guilty in U.S. Court After Extradition

Do Kwon, co-founder of Terraform Labs, appeared in a U.S. federal court on January 2, 2025, marking his first legal proceeding since being extradited from Montenegro.

Facing multiple charges tied to the collapse of the Terra blockchain, Kwon pleaded not guilty and will remain in custody without bail.

The charges against Kwon include securities fraud, wire fraud, money laundering, and commodities fraud—stemming from his alleged role in one of the most significant failures in the crypto space. A follow-up hearing is set for January 8, during which legal teams will exchange evidence and prepare motions ahead of the trial.

Kwon’s extradition to the U.S. follows months of deliberation in Montenegro, where authorities weighed competing requests from the U.S. and South Korea. On December 27, 2024, Montenegrin Justice Minister Bojan Božović approved the transfer, citing the severity of the charges and jurisdictional considerations. The Ministry of Justice highlighted factors such as the seriousness of the crimes and the possibility of further legal proceedings in other countries.

Kwon’s legal troubles have spanned years, including a landmark settlement in 2024 when Terraform Labs agreed to pay $4.47 billion to the U.S. Securities and Exchange Commission (SEC), including $204 million in penalties directly tied to Kwon. Despite the settlement, his role in the Terra ecosystem’s collapse continues to draw significant scrutiny as he faces trial in the U.S.