Over 1M People Could Be Affected Through Terra Collapse
U.S. prosecutors handling the criminal case against Do Kwon, co-founder of Terraform Labs, estimate that over one million individuals may have been impacted by the infamous collapse of the Terra ecosystem.
A Monumental Collapse
Acting U.S. Attorney Daniel Gitner stated that the government plans to set up a website to inform victims of their rights, deeming other methods impracticable due to the decentralized nature of cryptocurrency transactions, which lack identifiable personal information.
Terra collapsed in May 2022, losing a $50 billion valuation in just 72 hours. Kwon had claimed his project aimed to build an ecosystem superior to Bitcoin (BTC) and Ethereum (ETH), but lacked transparency. The U.S. Department of Justice alleges Kwon misled investors and manipulated markets.
An Ongoing Case
Kwon was extradited to the U.S. via Montenegro earlier this year, facing nine felony fraud charges. He pleaded not guilty in court on January 2nd. Authorities have not yet revealed whether they will offer a plea deal or proceed to trial.
In addition to the various criminal charges, Kwon was also ordered to pay a $4.5 billion settlement to the United States Securities and Exchange Commission (SEC) in April 2024.
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