The UST and Luna Collapse Case Nears End as Terra Founder Do Kwon Agrees to Plead Guilty to Financial Fraud

BlockBeats News, August 12th, during a court hearing in the United States, Terra founder Do Kwon will plead guilty to two charges of conspiracy to commit fraud and online fraud, involving the previously $40 billion TerraUSD (UST) and Luna collapse.

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