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Do Kwon
Co-Founder, Terraform Labs
Cryptocurrency executive charged with fraud after $40B Terra/Luna collapse
Overview
Do Kwon co-founded Terraform Labs and created the Terra/Luna cryptocurrency ecosystem, which collapsed in May 2022 wiping out approximately $40 billion in investor value in five days. The SEC charged Kwon with fraud, alleging that Terraform Labs manipulated the UST stablecoin peg using secret reserves while publicly claiming the system was purely algorithmic. Kwon had dismissed warnings from economists who predicted the collapse, calling critics "poor." After fleeing to Montenegro, he was arrested in March 2023 and faces charges in both the U.S. and South Korea.
Key Affiliations
Controversies & Concerns
Terra/Luna ecosystem collapsed in 5 days wiping out approximately $40 billion
Algorithmically "stable" UST coin was secretly propped up with undisclosed reserves
Dismissed expert warnings about fundamental instability of algorithmic stablecoins
Fled South Korea to Singapore then Serbia then Montenegro after collapse
Found with falsified Costa Rican passport when arrested in Montenegro
Tweeted "I don't debate the poor" to critics who predicted collapse
Related Investigations (2)
Criminal Charges & Violations
2 documented violations
17 C.F.R. 240.10b-5Securities Fraud(Financial Crime)
SEC Civil ActionMulti-billion dollar investor fraud and market manipulation(Financial Crime)
Known Associates & Connections
Daniel Shin
Terraform Labs co-founder; also under investigation in South Korea
Sources & Documentation
1 documented sources from official records, investigations, and reports
Personal Information
- Born
- September 6, 1991
- Birthplace
- Seoul, South Korea
- Also Known As
- Kwon Do-hyung
Education
- •Stanford University (B.S. Computer Science)
Key Timeline
2018
Co-founded Terraform Labs; launched Terra blockchain
May 2022
UST stablecoin lost its peg; Terra/Luna ecosystem collapsed; $40B wiped out
September 2022
South Korean prosecutors issued arrest warrant; INTERPOL issued Red Notice
February 2023
SEC charged Kwon and Terraform Labs with fraud
March 2023
Arrested in Montenegro with falsified travel documents
December 2024
Extradited to United States to face federal charges