The UST and Luna Crash Saga Nears its End as Terra Founder Do Kwon Pleads Guilty

BlockBeats News, August 12th: At a hearing in a U.S. court, Terra founder Do Kwon pleaded guilty to two counts of conspiracy to commit fraud and wire fraud, related to the previous $40 billion TerraUSD (UST) and Luna collapse.

Do Kwon, born in Seoul, South Korea in 1991, co-founded Terraform Labs in Singapore in 2018 with others, launching the algorithmic stablecoin TerraUSD and the governance token Luna, once seen as an innovative benchmark in DeFi. In May 2022, due to algorithmic imbalance, TerraUSD decoupled from the U.S. dollar, causing a sharp drop in Luna and UST prices, nearly zeroing out the market value, triggering market panic and a chain reaction, further plunging the crypto market into a bear market abyss. Global investors lost approximately $40 billion, and Do Kwon was consequently charged with financial fraud.