Early life
Do Kwon was born in 1991 in Seoul, South Korea
He was a very smart student
Studied at Daewon Foreign Language High School
Moved to the United States and got into Stanford University
Worked as a software engineer at Microsoft
Later returned to South Korea
Started a tech company called Anyfi, focused on internet networking
Terraform Labs Begins (2018–2021)
In 2018, Do Kwon co-founded Terraform Labs with Daniel Shin
They launched the Terra blockchain
Created the LUNA token
Raised over $200 million from big investors
Terra quickly became popular in crypt
UST and Fast Growth (2020–2022)
Terra launched UST (TerraUSD), an algorithmic stablecoin
UST was supposed to always stay at $1
It worked by burning and minting LUNA
Anchor Protocol offered almost 20% yearly returns, attracting many users
LUNA price went as high as $116 in April 2022
Millions of people invested
The Crash (May 2022)
Over $2 billion was suddenly withdrawn from Anchor
Liquidity was removed from major trading pools
UST lost its $1 value
Terra tried to save it by selling Bitcoin reserves
The reserves ran out
UST crashed to almost zero
LUNA collapsed completely
About $40 billion in value was destroyed
More than 1 million investors lost money
Arrest and Legal Trouble (2023)
In March 2023, Do Kwon was arrested in Montenegro
He tried to travel using a fake passport
He was sent to prison in Montenegro
The US and South Korea both asked for his extradition
Serious Consequences (2024)
Terraform Labs filed for bankruptcy
A US jury found Do Kwon and Terraform guilty of fraud
Civil fines were over $4.5 billion
Montenegro agreed to send him to the US
Final Sentence (2025)
Do Kwon pleaded guilty
Admitted he lied to investors about UST being safe
Agreed to give up $19 million
Sentenced to 15 years in US federal prison
The judge called it a fraud that affected a whole generation
Conclusion
The collapse of Terra, LUNA, and UST is one of the biggest disasters in crypto history and a strong lesson about risk, trust, and unchecked promises
If you want, I can also:
Make it even shorter
Turn it into a Twitter/X thread
Explain what went wrong technically
Compare it with FTX or Celsius
