Biography:
Do Kwon, whose real name is Kwon Do-Hyung, was born on September 6, 1991, in Seoul, South Korea. He graduated from Stanford University with a Bachelor's degree in Computer Science in 2015, and then worked at major tech corporations like Apple and Microsoft. However, not long after, he felt dissatisfied with the lack of 'ambition' in large companies and decided to start his own business.
In 2016, Kwon returned to South Korea and founded the startup Anyfi, focusing on a distribution network related to Bitcoin and Ethereum. In 2018, along with his college friend Nicholas Platias, Kwon founded Terraform Labs in Singapore, with the vision of creating a new monetary system, specifically a decentralized stablecoin, TerraUSD (UST). The launch of UST marked the rise of the Terra empire, with ambitions to build a robust blockchain ecosystem.
However, in May 2022, TerraUSD (UST) – the stablecoin designed to maintain a stable value against the USD – unexpectedly lost its peg. Within just a week, the entire Terra-Luna ecosystem collapsed, with Luna losing almost all of its value, causing approximately $45 billion in market capitalization losses and affecting millions of investors worldwide.
After the collapse, Do Kwon faced numerous charges from authorities in South Korea, Singapore, and the United States, including fraud, deception, and violations of securities laws. In September 2022, South Korea issued a warrant for his arrest, and Interpol placed him on its red notice list. Kwon was arrested in Montenegro in March 2023 while trying to use fake documents to leave the country.
In addition to fraud allegations, Do Kwon and Terraform Labs also faced tax evasion charges. The National Tax Agency of South Korea conducted an investigation and found that Terraform Labs had transferred a large amount of profits to the British Virgin Islands to exploit favorable tax policies for tax evasion. Do Kwon, as the largest shareholder, was accused of tax evasion amounting to 100 billion won.
On December 25, 2024, the Constitutional Court of Montenegro dismissed Do Kwon's appeal against the extradition decision, paving the way for him to be extradited to South Korea or the United States to face serious charges. Currently, the final decision rests with the Minister of Justice of Montenegro, who will determine which country will have the right to prosecute Do Kwon.
The story of Do Kwon is a major tragedy in the history of the financial industry. He was once a symbol of innovation, a beacon of hope for those who believed in the potential of blockchain and cryptocurrency. But unchecked ambition, along with a lack of responsibility towards investors, turned him into an international criminal. The consequences of the Terra-Luna collapse are not only financial losses but also a shaking of trust in blockchain projects worldwide. Regulatory agencies are now tightening regulations in this field, and the story of Do Kwon remains a costly lesson for the entire community.
When Do Kwon faces justice, the biggest question is whether he will redeem his mistakes or forever be a symbol of failure. One thing is certain: his talent, no matter how extraordinary, could not overcome greed and a lack of ethics. Do Kwon not only lost an empire but also the trust of millions. And that, perhaps, is the greatest punishment he must face.
And is there a solution for the community to 'rise from the ashes'?
(If you find the author’s writing inappropriate, you can leave; no one is forcing you to read and then criticize. If one is uneducated, the author could not write articles that attract readers! The author simply rolls through the harsh currents of life and can use a variety of writing styles to express thoughts.)
