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Former Terraform Labs CEO Do Kwon, once a celebrated figure in the cryptocurrency world, now faces a maximum sentence of 130 years in prison and a tougher legal challenge following his extradition to the United States.

In his first U.S. court appearance, the 33-year-old Korean national pleaded not guilty to charges in Manhattan last week. Kwon is now facing more than half a dozen charges stemming from the largest collapse in the history of crypto, resulting in over $40 billion in investor losses. Coinage was the first to interview Do Kwon after the collapse in an award-winning documentary .

The U.S. Department of Justice unsealed a superseding indictment detailing a series of damning allegations against Kwon . The charges include securities fraud, commodities fraud, wire fraud, conspiracy, and money laundering, each carrying significant penalties. If convicted on all counts, Kwon faces a potential 130-year prison term, underscoring the gravity of the courtroom battle that is now shaping up in New York.

Among the most significant accusations is Kwon’s role in propping up Terra's algorithmic stablecoin during its 2021 de-pegging crisis. According to the indictment, Kwon secretly struck a deal with a high-frequency trading firm to artificially restore UST’s $1 peg through large-scale purchases. The SEC civil fraud trial revealed the un-named trading firm to be Jump Crypto . This move misled investors about the stability and self-sufficiency of the Terra protocol, inflating market confidence in the ecosystem.

Another critical component of the DOJ’s case centers on Kwon’s misrepresentations about the Luna Foundation Guard (LFG). Kwon portrayed LFG as an independent organization with billions in reserves to defend UST’s peg. Prosecutors are preparing their case to demonstrate to a jury that Kwon used LFG to misappropriate hundreds of millions of dollars from its reserves. Prosecutors allege that Kwon laundered these funds through complex transactions involving blockchain networks, exchanges, and Swiss bank accounts.

A lawyer for Do Kwon did not immediately respond for comment.

Kwon’s case has become a focal point for regulators and law enforcement agencies worldwide, highlighting the urgent need for stricter oversight in the cryptocurrency industry. The fallout from Terraform’s collapse sent shockwaves through the market, leading to calls for more robust stablecoin regulations and greater transparency in blockchain operations.

As Kwon awaits trial, the crypto world grapples with the implications of his actions. His rise and fall serve as a cautionary tale, reflecting both the promise and perils of an industry still finding its footing. For investors, developers, and regulators alike, the Terraform debacle is a stark reminder of the high stakes involved in the quest to reshape the global financial system.

With his trial set to begin, the saga of Do Kwon enters its next chapter. For now, the man once hailed as a visionary is facing the very real possibility of spending a significant amount of his life behind bars, a striking conclusion to one of crypto’s most infamous stories.