Do Kwon faces 8 criminal charges in the US for the Terra-Luna collapse and fraud.
The Terra-Luna crash caused $40B in losses, leading to Terraform Labs’ bankruptcy.
Kwon could face up to 130 years in prison if convicted of all charges.
Do Kwon, the co-founder of Terraform Labs, faces multiple criminal charges in the United States, including conspiracy to commit fraud and market manipulation. These charges stem from the May 2022 collapse of the Terra-Luna stablecoin.
Prosecutors from the Southern District of New York have charged Kwon with eight criminal offenses. They accuse him of defrauding investors and misleading them about the capabilities of the Terra blockchain and its stablecoin protocol. Kwon’s return from Montenegro to the United States has brought renewed attention to the case, which could significantly impact the crypto industry.
The Collapse of Terra-Luna and Investor Losses
The Terra-Luna collapse sent shockwaves through the crypto market, leading to over $40 billion in investor losses globally. Prosecutors claim Kwon’s actions contributed to this failure. They allege he made false statements about the stability and functionality of Terra’…
The post Justice for Terra-Luna? Do Kwon’s Jan 8, 2025, Trial Brings 130-Year Stakes appeared first on Coin Edition.
