Do Kwon was charged with additional money laundering conspiracy, but pleaded not guilty to all charges when he appeared in court.

PANews reported on January 3 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 on January 2 by the U.S. District Court for the Southern District of New York. The indictment states that Do Kwon conspired with others to facilitate financial transactions involving more than $10,000, knowing that the transactions involved illegal proceeds.

Kwon has previously 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 handed over to the United States in December 2024. Currently, Kwon has pleaded not guilty to all charges when he appeared in court on January 2 and agreed to be detained. Whether a plea deal or a criminal trial will be reached remains uncertain.

The case has similarities to that of former FTX CEO Sam Bankman-Fried, who was extradited and later sentenced to 25 years in prison.