THE SHOCKING CASE IN THE CRYPTOCURRENCY WORLD: DO KWON AND THE TERRAUSD SCANDAL
Terraform Labs co-founder Do Kwon faced fraud charges in the US after the collapse of the TerraUSD and Luna cryptocurrencies he developed caused investors to lose $40 billion.
In 2022, TerraUSD lost its $1 peg, causing a major crash in the cryptocurrency market.
Following this incident, Kwon was accused of misleading investors and hiding assets.
Caught with a fake passport in Montenegro, Kwon was extradited to the US after a four-month prison sentence.
On January 2, 2025, Kwon was tried in Manhattan federal court on charges of securities fraud, wire fraud, commodity fraud and money laundering, and pleaded not guilty to all charges.
This case exposed the deficiencies in regulating cryptocurrency markets and protecting investors.
Kwon’s trial reflects the consequences of a lack of compliance and transparency with financial regulations rather than the cryptocurrency’s struggle against the dollar.
In conclusion, the case against Do Kwon and Terraform Labs is a striking example that highlights the importance of regulatory compliance in the cryptocurrency market.
