Before its epic collapse in May 2022, the Terra protocol, developed by Terraform Labs, was evaluated as a successful blockchain project among investors. LUNA, Terra's native token, had the eighth largest market cap among cryptocurrencies, valued at nearly $40 billion in April 2022.
On May 9, 2022, at 15:00 (UTC), UST started losing its peg to the dollar. Following this loss, the price of UST and LUNA plummeted drastically, and just three weeks later, they became obsolete in the ecosystem with the launch of Terra 2.0 on May 28.
Do Kwon was sentenced to 15 years in prison in 2025. During the reading of the sentence, one of the judges stated that Kwon's work at Terraform Labs was "an epic generational fraud" comparable to very few previous scams.
On May 9, 2022, at 15:00 (UTC), UST started losing its peg to the dollar. Following this loss, the price of UST and LUNA plummeted drastically, and just three weeks later, they became obsolete in the ecosystem with the launch of Terra 2.0 on May 28.
Do Kwon was sentenced to 15 years in prison in 2025. During the reading of the sentence, one of the judges stated that Kwon's work at Terraform Labs was "an epic generational fraud" comparable to very few previous scams.
