Terraform Labs founder Do Kwon is expected to plead guilty to U.S. charges tied to the 2022 collapse of TerraUSD and LUNA, which wiped out an estimated $40 billion in investor value.$LUNA
The charges include securities fraud, wire fraud, and money laundering. Kwon’s court appearance is set for later this week.
The TerraUSD collapse was triggered when its algorithmic peg to the U.S. dollar failed, sparking a massive sell-off that spread panic across the crypto market. This incident remains one of the largest failures in crypto history, prompting tighter regulations worldwide.
Quick “What to Do” for Investors
1. Stay Diversified – Avoid overexposure to any single project or coin.
2. Check Project Fundamentals – Ensure stablecoins have transparent reserves or credible collateral.$TERMINUS
3. Follow Regulatory Updates – Legal cases like this can set new industry precedents.
4. Use Reputable Platforms – Trade and store assets with exchanges that have strong compliance and SAFU funds.$ALT