Collapse Do Kwon and previously LUNA: famous
- born in Seoul in 1991
- the best student, studies at Devon foreign language high school
- moves to the USA and enrolls at Stanford
- works as a software engineer at Microsoft
- returns to South Korea
- founds Anyfi, a P2P networking startup
2018–2021: Terraform Labs arc
- co-chair of Terraform Labs in 2018 with Daniel Shin
- launches the Terra blockchain and LUNA token
- raises over 200 million dollars from venture capitalists
2020–2022: UST and rapid growth
- launches TerraUSD (UST), an algorithmic stablecoin
- UST uses a burning and minting mechanism with LUNA
- Anchor Protocol offers ~19.5% APY on UST deposits
- LUNA reaches around 116 dollars in April 2022
May 2022: crash
- over 2 billion dollars in UST withdrawn from Anchor
- liquidity removed from Curve pools
- UST loses its peg to the dollar
- Luna Foundation Guard sells Bitcoin reserves to protect
- reserves depleted
•UST falls to fractions of a dollar
- about 40 billion dollars in market value liquidated
- >1 million investors affected
March 2023: arrest
- arrested in Montenegro
- attempted to travel with a fake passport
- sentenced to prison in Montenegro
- the battle for extradition between the USA and South Korea begins
2024: escalation
- Terraform Labs files for Chapter 11 bankruptcy
- US jury finds Terraform Labs and Do Kwon guilty of securities fraud
- civil penalties exceed 4.5 billion dollars
- Montenegro approves extradition to the USA
2025: sentence
- pleads guilty to wire fraud and conspiracy
- admits to misleading investors about the stability of UST
- agrees to the confiscation of 19 million dollars
- 15 years in federal prison
- judge calls it a generational-scale fraud
Terra remains one of the largest crashes in cryptocurrency
