Terra’s Do Kwon Charged with Crypto Fraud: $40B in Investor Losses

• US prosecutors have accused the Co-Founder of Terraform Labs, Do Kwon, of orchestrating a cryptocurrency scam that allegedly drained at least $40 billion from investors.
• A grand jury in Manhattan has charged Kwon with securities fraud, commodities fraud, and conspiracy.
• This follows the US SEC’s plea that Terraform Labs and Kwon organized a massive scam by offering and selling unregistered securities through the use of digital currencies.

Accusations Against Do Kwon

US prosecutors have reportedly accused the notorious Co-Founder of Terraform Labs – Do Kwon – of orchestrating a cryptocurrency scam that drained at least $40 billion from investors. The authorities of Montenegro arrested the 31-year-old developer earlier this week after he was on the run for several months, hiding in numerous countries and falsifying his identity.

Grand Jury Charges

According to a Bloomberg coverage, US prosecutors named Kwon as the main culprit behind the collapse of LUNA/UST in May last year that led to multi-billion losses for investors. A grand jury in Manhattan charged him with securities fraud, commodities fraud, and conspiracy.

SEC’s Plea

This follows the US SEC’s plea that Terraform Labs and Kwon organized a massive scam by offering and selling unregistered securities through the use of digital currencies. The US Department of Justice also launched an investigation against the project and its former employees to determine the main factors behind this catastrophe.

Kwon’s Arrest

Kwon was detained earlier this week in Montenegro after being on the run for several months while falsifying his identity across various countries.

Conclusion

It remains to be seen how these charges will be handled by American prosecutors or whether any further investigations into Terraform Labs will take place as a result of this incident.