Terraform Labs co-founder and TerraUSD and Luna Do Kwon pleaded not guilty in Manhattan federal court. A nine-count indictment alleging securities fraud, wire fraud, and money laundering conspiracy. Federal prosecutors claim Kwon misled investors about the stability of TerraUSD, a stablecoin, by secretly using a high-frequency trading firm to artificially maintain its value. Terraform products allegedly surged to $50 billion before collapsing in May 2022, triggering broader crypto market turmoil. Terraform declared bankruptcy last January.
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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Terraform Labs co-founder and Terra USD, Luna Duquan, pleaded not guilty in Manhattan Federal
00:08Court. A nine-count indictment alleges securities fraud, wire fraud, and money laundering conspiracy.
00:13Federal prosecutors claim Duquan misled investors about the stability of Terra USD,
00:18a stablecoin, by secretly using a high-frequency trading firm to artificially maintain its value.
00:24Terraform products allegedly surged to $50 billion in value before collapsing in May 2022,
00:30triggering broader crypto market turmoil. Terraform declared bankruptcy last January.