NEW YORK (AP) — South Korean cryptocurrency mogul Do Hyeong Kwon pleaded not guilty Thursday to a freshly unsealed indictment released in time for his first U.S. court appearance.
Kwon entered the plea in Manhattan federal court two days after his extradition from Montenegro.
The indictment alleges that the man dubbed by some as “the cryptocurrency king” lied to investors from 2018 to 2022 to fool them into pouring money into Terraform Labs, the Singapore crypto firm he cofounded.
Authorities say investors worldwide were harmed by the $40 billion crash of Terraform Labs’ cryptocurrency.
The May 2022 collapse came despite the company’s claim that TerraUSD was a “stablecoin” that could be relied upon.
Kwon did not speak during his court appearance, except to acknowledge that he understood English. His lawyer, Andrew Chesley, entered not guilty pleas to two separate versions of the indictment charging him with conspiracy, along with commodities, securities and wire fraud. A money laundering charge was added Thursday.
Chesley and another defense lawyer, David Patton, declined comment as they emerged from the courtroom. Their client was returned to a federal jail after the lawyers consented to his detention.
The superseding indictment accused Kwon of deceiving investors by telling them that Terraform had developed novel reliable financial technologies enabling it to turn blockchain technology into a self-contained decentralized financial world with its own money, payment system, stock market and savings bank.
“In fact,” the indictment said, “Kwon's constructed financial world was built on lies and manipulative and deceptive techniques used to mislead investors, users, business partners, and government regulators” about Terraform's business.
“Behind the scenes, core Terraform products did not work as Kwon advertised, and were manipulated to create the illusion of a functioning and decentralized financial system in order to lure investors,” it added.
FILE - Montenegrin police officers escort South Korean citizen, Terraform Labs founder Do Kwon in Montenegro's capital Podgorica, Saturday, March 23, 2024. (AP Photo/Risto Bozovic, File)
MIAMI (AP) — For the 119th time since Jimmy Butler joined Miami, the Heat were playing a game without him.
This was different from the others.
Butler is gone, banished by the Heat for seven games over what they called conduct detrimental to the team — and he's probably not going to play for Miami again. His suspension started Saturday night when the Heat played the Utah Jazz, and the team says it will agree to his wishes and try to facilitate a trade.
“It’s disappointing when you see the organization and a player going head-to-head like that,” Heat captain Bam Adebayo said Saturday after the team's shootaround practice. “But the rest of us got to figure out how to win games.”
Butler has not commented publicly on the suspension. The National Basketball Players Association spoke out on Butler's behalf hours after the Heat announced the suspension on Friday, saying it believes the team's actions are “excessive and inappropriate.” The suspension could cost Butler about $2.4 million of his $48.8 million salary this season.
“It's none of our business,” Adebayo said. “It’s for Jimmy and for the management to handle.”
How it gets handled from here, and on what timeframe, is anyone's guess.
There was a new starting lineup with Butler gone: Miami opened the game with Terry Rozier, Tyler Herro, Haywood Highsmith, Nikola Jovic and Adebayo. Butler's locker is still the way he left it, shower shoes leaning against the drawer under the seat, a few items hanging on hooks and a few things taped to the wall. It will be cleaned out at some point, but he's still part of the team.
For now, anyway.
“We’re just going to focus on tonight," Heat coach Erik Spoelstra said before the game. "I want to quiet all the distractions. Enough has been said. We have clarity. We’re just going to focus on this group in the locker room. That’s what I want them to focus on and quiet the noise as much as possible. I’m not a clickbait type of coach, so you’re not going to get anything else really from me. We have a task to do.”
Utah will see Miami twice during Butler's suspension; the Heat play in Salt Lake City on Thursday. Jazz coach Will Hardy knows being without Butler won't change Spoelstra's approach.
“They have a consistency in their program from a competitive standpoint that you know that it doesn’t matter who plays," Hardy said. “You come here, you play Miami in your building, it’s going to be 48 minutes of highly competitive, physical basketball. Spo has shown that the entire time he’s been in Miami.”
Trading Butler will be a challenge in these NBA times, with the rules of the collective bargaining agreement limiting the ways teams can acquire players. It's possible, but it's far from certain. And the Heat simply letting Butler leave as a free agent this summer also remains a possibility — a move that would open up some other avenues for Miami to acquire new players before next season.
“It sucks to see that he won’t be around,” Rozier said.
Butler averaged 21.7 points, 6.2 rebounds and 5.7 assists in 380 games with the Heat, including playoffs. Entering Saturday, since Butler joined the Heat, they won 59.7% of their games when he played (227-153); they won 49.2% of their games when he didn’t (58-60).
He became eligible last summer for a two-year, $113 million extension. The deal was never offered by the Heat, in part because Butler has missed about one-quarter of the team's games during his Miami tenure.
It was only natural that such a big sum of money not being offered was going to lead to problems. And the tension boiled over this week. Butler didn't play in the fourth quarters of Miami games on Wednesday and Thursday; he spent some offensive possessions simply standing in the corner, almost as if he had no role.
“I feel like he came to work, he tried to perform, and it just didn’t go his way,” Adebayo said. “I feel like he didn’t want to be in the corner. But like I said, we developed a system where we play around everybody, and we just had to figure out how to incorporate him. But after what happened yesterday, we’re focused on who’s with us now.”
After the second of those games earlier in the week, Butler said “probably not” when asked if he thought he could find on-court joy again in Miami.
Saying those two words may have been his last official act as a member of the Heat. A week or so ago, Miami had no interest in trading Butler. Hearing him say that he doesn't want to be on the team anymore evidently changed things.
“It's hard to not see him around,” Jovic said.
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Miami Heat forward Jimmy Butler (22) and center Bam Adebayo, left, are introduced before an NBA basketball game against the Indiana Pacers Thursday, Jan. 2, 2025, in Miami. (AP Photo/Lynne Sladky)
