NEW YORK — Do Hyeong Kwon, a prominent figure in the cryptocurrency realm from South Korea, entered a not guilty plea on Thursday in response to a new indictment that was revealed ahead of his initial court session in the United States.

Kwon made his plea during proceedings in a federal court in Manhattan just two days following his extradition from Montenegro.

The indictment accuses Kwon, often referred to as “the cryptocurrency king,” of misleading investors from 2018 to 2022 to entice them into investing in Terraform Labs, a crypto company he co-founded in Singapore.

According to authorities, the $40 billion downfall of Terraform Labs’ cryptocurrency significantly harmed investors around the globe.

This collapse in May 2022 happened notwithstanding the firm’s assertions that its offering, TerraUSD, was a reliable “stablecoin.”

During his court appearance, Kwon remained largely silent, only indicating that he comprehends English. His attorney, Andrew Chesley, entered not guilty pleas on behalf of Kwon to two versions of the indictment that charged him with conspiracy, along with commodities, securities, and wire fraud. Additionally, a charge of money laundering was included on Thursday.

Chesley, along with another attorney, David Patton, opted not to make any statements as they left the courtroom. Kwon was taken back to a federal jail after the defense attorneys agreed to his detention.

The updated indictment claims that Kwon misled investors by asserting that Terraform had created innovative financial technologies. These technologies purportedly allowed the company to transform blockchain into a self-sufficient decentralized financial ecosystem, complete with its own currency, payment system, stock market, and savings bank.

However, the indictment further alleged that “in reality, Kwon’s fabricated financial world was based on falsehoods and manipulative practices intended to mislead investors, users, business associates, and regulatory bodies” regarding Terraform’s actual operations.

It also stated, “In the background, the fundamental products of Terraform did not operate as Kwon had promoted, and were artificially manipulated to give the false impression of a functioning decentralized financial system, designed to attract investors.”