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Do Kwon Faces Possible Guilty Plea in $40B TerraUSD Crash Saga

Do Kwon Faces Possible Guilty Plea in $40B TerraUSD Crash Saga

Published:
2025-08-12 05:12:31
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Breaking: The crypto world braces as Do Kwon—once the golden boy of algorithmic stablecoins—may finally fold in the TerraUSD collapse case. $40 billion vanished. Now, accountability knocks.

Behind the fall of a 'stable' coin

TerraUSD wasn’t just another DeFi experiment—it was a house of cards wrapped in blockchain hype. When it imploded, retail investors got buried. Kwon’s potential guilty plea? A rare moment of reckoning for crypto’s 'move fast and break things' culture.

Wall Street’s schadenfreude moment

Traditional finance vultures are circling. 'See? This is why we regulate,' they squawk—conveniently ignoring their own 2008-sized skeletons. The irony? Banks still can’t match blockchain’s transparency, even in failure.

What’s next for crypto’s bad boys?

If Kwon cops a plea, it sends a message: play stupid games with other people’s money, win stupid prizes. But let’s be real—somewhere, another 'genius' is already coding the next 'unstoppable' protocol. The cycle continues.

The Collapse of UST Stablecoin

These charges are tied to the failure of Terraform’s algorithmic stablecoin UST, which collapsed in May 2022 after its link to the LUNA token broke, wiping out billions from the crypto market, and triggering the downfall of other firms, including FTX.

Sources told Bloomberg that prosecutors and Kwon’s lawyers are discussing a possible plea deal, although details haven’t been finalized. Kwon has been in U.S. custody since being extradited from Montenegro, where he was arrested in March 2023 for trying to travel with fake documents.

Both the U.S. and South Korea are seeking criminal charges against Kwon, so even if he pleads guilty in the U.S., it might not absolve him of guilt in other countries. Terraform Labs, which went bankrupt in January, has claimed innocence.

Reports of the possible guilty plea of Kwon have affected crypto prices, with prices of LUNA and LUNC falling. Terra’s LUNA token is trading at $0.1588, down 4.59% in the past 24 hours, with a market cap of $112.76 million. Additionally, Terra Classic (LUNC) is priced at $0.00006067, down 3.77%, holding a market cap of $334.15 million.

Also Read: ethereum Dev Freed After 24-Hour Detention in Turkey

    

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