Do Kwon Indicted on Fraud Charges in New York

Do Kwon has been charged with securities fraud, wire fraud and commodities fraud, the indictment shows


Paul Brady Photography/Shutterstock modified by Blockworks


Terraform Labs founder Do Kwon has been indicted in the US on fraud charges hours after his arrest in Montenegro

A grand jury in New York federal court charged Kwon with securities fraud, wire fraud and commodities fraud, the indictment shows. 

Kwon also has pending federal cases in the Southern District of New York with the SEC. The securities regulator charged Kwon with an alleged unregistered security offering last month.

The crypto executive was first served with a subpoena from the SEC in November 2021. Kwon and Terraform then countersued the agency challenging the subpoenas, citing alleged violations to due process law. 

Montenegrin authorities may hand Kwon over to the US, based on prior agreements. The country has “provided significant assistance” in extraditions to the US, the Department of Justice said in November 2022. 

Montenegro will only extradite on bilateral agreement and will transfer the person who has been granted extradition within 30 days, according to the Council of Europe

Kwon is still wanted by government officials in South Korea, who issued a warrant for his arrest in October 2022.

Terraform Labs’ stablecoin, TerraUSD (UST), rocked crypto markets with its sudden collapse last year. The fall of UST, and its sister coin, LUNA, led to billions of dollars in losses for investors.

The US Department of Justice is reportedly investigating UST’s failure, alleging that Kwon and his company misled investors about the stablecoin’s risks.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


MicroStrategy discloses the purchase of 16,000 bitcoin throughout November


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks


DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely


Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US


Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said