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Do Kwon created Terra and its algorithmic stablecoin UST, which at its peak had a market cap of over $18 billion. The collapse of Terra/Luna in May 2022 wiped out approximately $45 billion in market value in one week, triggered contagion across the crypto industry, and contributed to the failures of multiple companies including Three Arrows Capital and Celsius.

Key Contributions (Pre-Collapse)

  • Co-founded Terraform Labs with Daniel Shin (2018)

  • Created algorithmic stablecoin TerraUSD (UST)

  • Built Luna token ecosystem

  • Pioneered "Anchor Protocol" offering 20% APY

The Terra Collapse

  • May 7-13, 2022: UST lost its dollar peg

  • Luna token collapsed from $119 to essentially zero

  • ~$45 billion in market cap destroyed

  • Cascading failures across crypto industry

  • Triggered regulatory scrutiny worldwide

Criminal Conviction

  • March 2023: Arrested in Montenegro with fake passport

  • U.S. charges: Securities fraud, commodities fraud, wire fraud, conspiracy

  • South Korea charges: Capital markets law violations

  • Pleaded guilty to two counts of fraud

  • December 2025: Sentenced to 15 years in prison