maybe they outsourced to ChatGPT the job of checking there haven't been any other projects with names like terra/luna that would evoke extremely negative reactions
Tagged #Terra
Citation Needed
Issue 98 – The world’s most corrupt crypto startup operation
Terra’s Do Kwon gets 15 years, crypto banks get the green light, and the Trump family’s crypto grift expands even as one of their treasury companies goes off the rails
I have purchased the PACER documents so everyone can read the impact statements submitted by victims of Do Kwon and the 2022 Terra/Luna meltdown. Collapses like these ruin lives.
![described UST as a stablecoin that would always hold its $1 peg, and those protocols as safe, reliable way to earn 19–40% yield. It didn’t feel like gambling; it felt like the answer we had been praying for. We sold everything at discounted prices: the house, the business, the cars. We scraped together just over $190,000 — every dollar of seventeen years of sacrifice — and in late April 2022 I converted it all to UST and locked it into Anchor and Mirror, trusting the promises that had been repeated for months. Just two weeks later, on May 9, 2022, I watched UST fall off its peg. In panic, I almost sold everything to limit the damage, but then I saw Mr. Kwon’s tweet: “Deploying more capital— steady lads.”. The price started recovering that day. I trusted him again and decided to keep the UST locked. What followed were two weeks of pure terror. The Terra blockchain halted. Mirror Protocol liquidity vanished. I couldn’t withdraw a single cent. When the system finally let me out on May 23, UST was trading below $0.07. Our $190,000 had become less than $13,000. Seventeen years of our lives — gone in two weeks. People say you should never risk money you can’t afford to lose. But this never felt like risk. The founder of the project had called it “too big to fail,” boasted that the Luna Foundation Guard would protect every dollar. To a desperate father trying to feed two families in a foreign country, it sounded like the safest investment ever. The money was only the beginning of the catastrophe. Less than two weeks after the collapse, my wife packed her bags. She could no longer trust that I could keep her and her mother financially safe. A few months later the divorce papers arrived. Our teenage sons chose to stay with me and my parents, to hold what was left of the family together. College was never mentioned again. Both boys quit school and now work as car mechanics to put food on the table. Today I am [redacted]. I live in [redacted] with my elderly parents, taking whatever cash jobs I can find, waiting for a war in my home country to end. My ex-wife lives in another country, babysitting strangers’ children to survive. My sons fix cars instead of studying the engineering degrees they once dreamed of. I cannot return to the United States — there is nothing left for us there: no home, no business, no savings, no future. Everything we built over nearly two decades vanished in May 2022. I never imagined a person I had never met, never spoken to, could destroy my family so](https://storage.mollywhite.net/micro/bc295b997c4a6e98cf8e_Screenshot-2025-12-11-at-4.42.55---PM.png)
Citation Needed
Issue 73 – Degen volunteer fire brigade
Terra founder Do Kwon is finally extradited, the CFPB proposes crypto consumer protections, and Polymarket reaches new lows.
- tags
- #crypto #polymarket #terra
filed under “Reddit comments that didn’t age well”
- tags
- #terra
The SEC is asking the judge in the Terra lawsuit to order $4.2 billion in disgorgement, a $420 million penalty against Terraform Labs, and a $100 million penalty against Do Kwon.
They also want Kwon banned from serving as an officer or director of a publicly traded company.
Citation Needed
Issue 55 – Halving a bad time
The bitcoin "halving" looms, and that may not be as good news as coiners hope. Also, Terra committed fraud and Uniswap got a Wells notice.
Verdict against Terraform Labs and Do Kwon, responsible for the Terra/Luna algostablecoin collapse in May 2022.
![UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SECURITIES AND EXCHANGE COMMISSION Plaintiffs, v TERRAFORM LABS PTE. LTD. and DO HYEONG KWON, Defendant. Verdict 1. On the SEC's first claim, under Section 17, we the jury find defendant Terraform Labs Pte. Ltd. ("Terraform"): Liable [If you answer "Liable" to Question 1, answer Question 2. Otherwise skip to Question 3.] 2. Having found Terraform liable on the SEC's first claim, we the jury find that Terraform acted [choose the highest you found]: Recklessly 3. On the SEC's first claim, under Section 17, we the jury find defendant Do Hyeong Kwon ("Kwon"): Liable [If you answer "Liable" to Question 3, answer Question 4. Otherwise, skip to Question 5.J 4. Having found Kwon liable on the SEC's first claim, we the jury find that Kwon acted [choose the highest you found]: Intentionally 5. On the SEC's second claim, for intentional or reckless violation of Rule 10b-5, we the jury find defendant Terraform: Liable](https://storage.mollywhite.net/micro/c71a3825f36ca1a65eac_1.png)
![6. On the SEC's second claim, for intentional or reckless violation of Rule 106-5, we the jury find defendant Kwon: Liable [If you answered "Not Liable" to Question 5, do not answer question 7. If you answered "Liable" to Question 5, proceed to Question 7.] 7. On the claim for control person liability regarding Terraform's violation of Rule 10b-5, we the jury find defendant Kwon: Liable FOREPERSON Date: 04/05/24](https://storage.mollywhite.net/micro/a4397273203403c5ae0a_2.png)
Citation Needed
Issue 54 – Cases continue
Crypto-related litigation is in full swing, as the Terra civil fraud trial has kicked off and two other cases against crypto companies have survived motions to dismiss.