This happened 4 years ago
The day $LUNA
crashed to $0
- Do Kwon
- moves to the US and gets into Stanford
- works as software engineer at Microsoft
- founds Anyfi, a P2P mesh networking startup
- cofounds Terraform Labs in 2018 with Daniel Shin
- launches Terra blockchain and LUNA token
- raises over $200M from VCs
- launches TerraUSD, an algorithmic stablecoin
- UST uses a burn-mint mechanism with LUNA
- Anchor Protocol offers ~19.5% APY on UST deposits
- LUNA reaches $116 in April 2022
- over $2B UST withdrawn from Anchor
- liquidity removed from Curve pools
- UST loses its dollar peg
- around $40B in market value is liquidated
- >1 million investors affected
- arrested in Montenegro
- attempted to travel using a forged passport
- extradition battle begins between US and South Korea
- Terraform Labs files for Chapter 11 bankruptcy
- US jury finds Terraform Labs and Do Kwon guilty of securities fraud
- civil penalties exceed $4.5B
- Montenegro approves extradition to the US
- pleads guilty to wire fraud and conspiracy
- admits misleading investors about UST stability
- agrees to forfeiture of $19M
- 15 years in federal prison
- judge calls it a fraud of generational scale
Terra remains one of the biggest collapses in crypto
The day $LUNA
crashed to $0
- Do Kwon
- moves to the US and gets into Stanford
- works as software engineer at Microsoft
- founds Anyfi, a P2P mesh networking startup
- cofounds Terraform Labs in 2018 with Daniel Shin
- launches Terra blockchain and LUNA token
- raises over $200M from VCs
- launches TerraUSD, an algorithmic stablecoin
- UST uses a burn-mint mechanism with LUNA
- Anchor Protocol offers ~19.5% APY on UST deposits
- LUNA reaches $116 in April 2022
- over $2B UST withdrawn from Anchor
- liquidity removed from Curve pools
- UST loses its dollar peg
- around $40B in market value is liquidated
- >1 million investors affected
- arrested in Montenegro
- attempted to travel using a forged passport
- extradition battle begins between US and South Korea
- Terraform Labs files for Chapter 11 bankruptcy
- US jury finds Terraform Labs and Do Kwon guilty of securities fraud
- civil penalties exceed $4.5B
- Montenegro approves extradition to the US
- pleads guilty to wire fraud and conspiracy
- admits misleading investors about UST stability
- agrees to forfeiture of $19M
- 15 years in federal prison
- judge calls it a fraud of generational scale
Terra remains one of the biggest collapses in crypto