two

Two founders, two very different paths

Daniel Shin and Do Kwon cofounded Terraform Labs in 2018, but their roles, timelines, and outcomes diverged sharply.

Daniel Shin (early architect, early exit)
Born in Seoul in 1985, a Wharton economics graduate, Shin was already a serial entrepreneur before crypto. He co-founded Fast Track Asia, incubated startups across Asia, and later ran Bass Ventures, positioning early around blockchain investments.

At Terraform Labs, Shin was an equal cofounder at inception and helped shape the early Terra vision including the algorithmic stablecoin concept and LUNA’s mint-burn mechanics. Terra’s go-to-market leaned on real-world payments: the Terra Alliance and Chai, which partnered with major Korean banks.

In 2020, Shin stepped away from operations and gradually reduced his stake to ~8%. Chai later cut ties with Terra. When UST depegged in 2022, Shin held no operational role. After the collapse, Korean prosecutors investigated allegations around inflated transaction volumes and early token sales; assets were frozen and charges filed in 2023. As of late 2025, Shin denies wrongdoing and the trial remains unresolved.

Do Kwon (operator through collapse)
Born in 1991, educated in Korea and the US, Stanford graduate, former Microsoft engineer, Kwon co-founded Terraform Labs and drove execution. Terra raised over $200M from VCs, launched UST as an algorithmic stablecoin, and fueled growth via Anchor’s ~19.5% yield. LUNA peaked near $116 in April 2022.

In May 2022, large withdrawals hit Anchor, liquidity drained, UST lost its peg, Bitcoin reserves were sold in defense, and the system collapsed erasing roughly $40B and impacting over a million investors.

Legal fallout followed. Kwon was arrested in Montenegro in 2023, extradition battles ensued, Terraform Labs filed Chapter 11 in 2024, and US courts found Kwon and the firm liable for securities fraud with civil penalties exceeding $4.5B. In 2025, Kwon pleaded guilty to wire fraud and conspiracy, admitted misleading investors, agreed to asset forfeiture, and received a 15-year federal sentence.

The split that defines Terra’s legacy
One founder exited early and faces unresolved questions.
The other stayed, made the final calls, and now serves time.

Terra remains one of crypto’s most consequential failures and a case study in how timing, control, and responsibility shape outcomes long after the collapse.
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