Lil1
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What we know about Do Kwon and his charges
Do Kwon, co-founder of Terraform Labs (creator of LUNA and TerraUSD/UST), faces charges in the U.S. for securities fraud, commodities fraud, electronic fraud, conspiracy, market manipulation, and money laundering. In August 2025, he pleaded guilty to conspiracy to commit fraud and electronic fraud, agreeing to forfeit more than 19 million dollars in assets.
Kwon was the main person responsible for the Terra protocol, which promised stability of UST through automatic algorithms. However, in 2022, UST lost its peg to the dollar and LUNA collapsed, resulting in estimated losses of 40 billion dollars. The charges stem from misleading investors about the safety of the system and hiding mechanisms that favored his own interests.
The judge overseeing the sentencing is Paul Engelmayer, from the Southern District of New York, and the sentencing date is set for December 11, 2025. This case sets an important precedent in the crypto ecosystem and closes the period of doubt regarding Do Kwon's responsibility, making it clear that those responsible for massive frauds can be brought to justice.
With the confirmation of Do Kwon's guilt, the case officially closes the period of doubt regarding the collapse of Terra/LUNA. LUNC may experience initial volatility, but in the medium term, the community and new investors could regain confidence, viewing the project as 'fraud-free' and with more transparency in the crypto ecosystem.
$LUNC
Do Kwon, co-founder of Terraform Labs (creator of LUNA and TerraUSD/UST), faces charges in the U.S. for securities fraud, commodities fraud, electronic fraud, conspiracy, market manipulation, and money laundering. In August 2025, he pleaded guilty to conspiracy to commit fraud and electronic fraud, agreeing to forfeit more than 19 million dollars in assets.
Kwon was the main person responsible for the Terra protocol, which promised stability of UST through automatic algorithms. However, in 2022, UST lost its peg to the dollar and LUNA collapsed, resulting in estimated losses of 40 billion dollars. The charges stem from misleading investors about the safety of the system and hiding mechanisms that favored his own interests.
The judge overseeing the sentencing is Paul Engelmayer, from the Southern District of New York, and the sentencing date is set for December 11, 2025. This case sets an important precedent in the crypto ecosystem and closes the period of doubt regarding Do Kwon's responsibility, making it clear that those responsible for massive frauds can be brought to justice.
With the confirmation of Do Kwon's guilt, the case officially closes the period of doubt regarding the collapse of Terra/LUNA. LUNC may experience initial volatility, but in the medium term, the community and new investors could regain confidence, viewing the project as 'fraud-free' and with more transparency in the crypto ecosystem.
$LUNC
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