← lunareviewed 2026-10-17 · 19 claims checked
Fact-check findings
What an automated fact-checker found when it re-read luna against the sources the page cites. Only the most recent review is shown.
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These findings are produced by an automated reviewer, and its results vary between runs: the same page, checked three times on the same day, came back with 15%, 20% and 34% of its claims disputed, mostly because each run extracted a different number of claims. Treat what follows as leads, not rulings.
“Disputed” means the reviewer could not reconcile the claim with the evidence it cited. It does not mean the claim is false. “Unverifiable” means no reachable source settled it either way.
Nothing here changes the page on its own. A proposed correction is applied only after a human moderator approves it; until then the page reads as it did when reviewed.
disputed
3 claimsThe reviewer could not reconcile the claim with the evidence it cited. This is a lead, not a ruling that the claim is false.
- #3[disputed][awaiting moderator]in section: Collapse and Market Impact
“Over the next week, the price of UST plunged to 10 cents, while LUNA fell to virtually zero, down from an all-time high of $119.51.”
reviewerLUNA fell to virtually zero, down from an all-time high of $119.51The page's own tier-1 cited source (Harvard Law/NBER) gives LUNA's all-time high as $119.18 on April 5, 2022, and this figure is echoed by the page's own timeline entry and by independent price trackers (Decrypt, ForkLog, Investing.com). Wikipedia (the page's tier-2 source) gives $119.51, which this sentence matches, but the weight of more credible, current sources favors $119.18. The page is internally inconsistent: this sentence says $119.51 while its own timeline entry three rows down says $119.18 for the same fact.Proposed correction (not yet applied)Over the next week, the price of UST plunged to 10 cents, while LUNA fell to virtually zero, down from an all-time high of $119.18. - #12[disputed][awaiting moderator]in section: Bitcoin Reserve Controversy
“Luna Foundation Guard (LFG) entered 2022 holding over 80,000 BTC as part of a reserve to help Terra's algorithmic stablecoin UST maintain its peg.”
reviewerLuna Foundation Guard (LFG) entered 2022 holding over 80,000 BTCLFG did not hold 80,000+ BTC 'entering 2022.' Its BTC-buying campaign began around February-March 2022 (funded by a February 2022 raise), reaching 27,785 BTC by March 29, 39,898 BTC by April 11, and only crossing 80,394 BTC around May 7, 2022, just before the collapse. The claim mischaracterizes the timeline of accumulation.Proposed correction (not yet applied)Luna Foundation Guard (LFG) had built up a reserve of over 80,000 BTC by May 2022 to help Terra's algorithmic stablecoin UST maintain its peg. - #14[disputed][awaiting moderator]in section: Bitcoin Reserve Controversy
“According to a 2026 lawsuit, during the final collapse in May 2022, the Luna Foundation Guard transferred nearly 50,000 bitcoins (approximately $1.5 billion) to Jump Trading without a written agreement, ostensibly for market stabilization.”
reviewerAccording to a 2026 lawsuit, LFG transferred nearly 50,000 bitcoins (~$1.5 billion) to Jump Trading without a written agreement during the May 2022 collapseThe underlying facts (~50,000 BTC, ~$1.5B, no written agreement, 'for market stabilization,' unknown final destination) are accurate and match the Todd Snyder/Terraform plan-administrator suit against Jump Trading. But that suit was filed in December 2025 (reported Dec 18-19, 2025 by Reuters/WSJ/Decrypt/Cointelegraph), not 2026. The cited PANews article itself never calls it a '2026 lawsuit' — it mentions February 2026 only in connection with a separate, unrelated Jane Street lawsuit referenced in the same piece, which appears to be the source of the page's date confusion.Proposed correction (not yet applied)According to a lawsuit filed in December 2025, during the final collapse in May 2022, the Luna Foundation Guard transferred nearly 50,000 bitcoins (approximately $1.5 billion) to Jump Trading without a written agreement, ostensibly for market stabilization.
partially supported
3 claimsThe cited evidence supports part of the claim but not all of it.
- #2[partially supported][awaiting moderator]in the summary
“At its peak, Terra was the third largest cryptocurrency ecosystem after Bitcoin and Ethereum before collapsing in three days in May 2022.”
reviewerTerra was the third largest cryptocurrency ecosystem after Bitcoin and Ethereum and collapsed in three days in May 2022This sentence is lifted almost verbatim from the abstract of the NBER working paper underlying the Harvard Law post ("Terra, the third largest cryptocurrency ecosystem after Bitcoin and Ethereum, collapsed in three days in May 2022"), so it is directly sourced. But it sits in the same summary as a separate claim that the collapse took 'one week,' and the page's own Collapse section says the depeg played out 'over the next week.' Both timeframes are independently sourced (three days refers to LUNA's price-to-zero death spiral; one week refers to the fuller UST depeg/unwind), but the page never reconciles them, leaving an internal inconsistency a reader would read as contradictory. - #11[partially supported][awaiting moderator]in section: Flawed Algorithmic Design
“Court findings confirmed that the 19.5% yield offered by Anchor was artificially maintained by injections from Terraform Labs' own reserves, with the DOJ's investigation revealing that Kwon used at least $145 million in "Genesis Stablecoins" for illicit purposes, including funding fake transactions to create an illusion of activity.”
reviewerKwon used at least $145 million in 'Genesis Stablecoins' for illicit purposes including funding fake transactionsThe $145 million Genesis Stablecoins figure is accurate and traces to the DOJ's own plea announcement (justice.gov/usao-sdny/pr/do-kwon-pleads-guilty-fraud), which says Kwon used at least $145 million of Genesis Stablecoins to fund fake Chai transactions and Mirror trading bots. However, the clause attributing the Anchor-subsidy finding specifically to 'court findings' is not clearly supported — the cited AurPay source (credibility 3, not independently vetted) says only that 'Harvard Law School analysis and court findings have since confirmed' this, without naming a specific court ruling, and the Harvard/NBER paper is academic research, not a judicial finding. The sentence blends a well-sourced DOJ fact with a looser claim about 'court findings' on Anchor's subsidy mechanism. - #16[partially supported][awaiting moderator]in the timeline
“Terraform Labs files for Chapter 11 bankruptcy”
reviewerTerraform Labs files for Chapter 11 bankruptcy on January 21, 2024The date (Jan 21, 2024) is correct and well-corroborated (The Block, Business Standard, Blockworks all confirm Terraform Labs Pte. Ltd. filed Chapter 11 in Delaware bankruptcy court on Jan. 21, 2024). But the cited source_url is SEC press release 2024-73, which is about the June 2024 settlement and does not report on, or corroborate, the bankruptcy filing at all — the citation does not support this specific timeline entry.
confirmed
13 claimsThe cited evidence supports the claim as written.
- #1[confirmed][no action needed]in the summary
“Terra was a blockchain protocol created in 2018 that collapsed in May 2022, wiping out almost $45 billion in market capitalization within one week.”
reviewerTerra collapse wiped out almost $45 billion in market capitalization within one weekMatches the Harvard Law School write-up of the NBER paper (Liu, Makarov, Sockin, Xiong), which reports a roughly one-week unwind of the UST/LUNA complex totaling in the $40-50bn range. - #4[confirmed][no action needed]in the timeline
“LUNA reaches all-time high of $119.18, market cap ~$40 billion”
reviewerLUNA reached an all-time high of $119.18 on April 5, 2022Matches the Harvard/NBER figure and independent reporting (Decrypt, ForkLog, Investing.com all give $119.18 on April 5, 2022). This is the figure in conflict with sections[0].content's $119.51 (see that finding). - #5[confirmed][no action needed]in section: Collapse and Market Impact
“By April 2022, daily subsidies required to maintain Anchor reached $6 million, prompting the Terra community to pass a proposal to gradually decrease the 19.5% interest rate.”
reviewerBy April 2022, daily subsidies required to maintain Anchor reached $6 million, prompting a community proposal to decrease the 19.5% interest rateDirectly confirmed: the Harvard article states the daily subsidy reached $6 million by April 2022 and that Anchor offered a 19.5% yield. - #6[confirmed][no action needed]in section: Regulatory Actions and Legal Consequences
“The SEC charged Terraform Labs and Do Kwon in U.S. District Court for the Southern District of New York on February 16, 2023, with securities fraud and for offering and selling securities in unregistered transactions.”
reviewerSEC charged Terraform Labs and Do Kwon in SDNY on February 16, 2023 with securities fraud and unregistered securities offeringsVerified by directly fetching the SEC press release (No. 2023-32, dated Feb. 16, 2023), titled 'SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes,' which matches the claim. URL is live, not dead. - #7[confirmed][no action needed]in section: Regulatory Actions and Legal Consequences
“On April 5, 2024, a jury unanimously found Terraform and Kwon liable for securities fraud after less than two hours of deliberation.”
reviewerOn April 5, 2024, a jury unanimously found Terraform and Kwon liable for securities fraud after less than two hours of deliberationConfirmed: a 7-person SDNY jury found Kwon and Terraform liable on April 5, 2024, after a Bloomberg-reported deliberation of under two hours. - #8[confirmed][no action needed]in section: Regulatory Actions and Legal Consequences
“As part of the settlement, Terraform agreed to pay $3.59 billion in disgorgement, $467 million in prejudgment interest, and a $420 million civil penalty. Kwon agreed to pay $110 million in disgorgement and $14.3 million in prejudgment interest, plus an $80 million civil penalty.”
reviewerSettlement terms: Terraform $3.59B disgorgement / $467M interest / $420M penalty; Kwon $110M disgorgement / $14.3M interest / $80M penaltyVerified by directly fetching SEC press release 2024-73 (live, titled 'Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict'): figures match exactly ($3,586,875,883 disgorgement, ~$467M interest, $420M penalty for Terraform; $110M disgorgement, ~$14.3M interest, $80M penalty for Kwon). - #9[confirmed][no action needed]in section: Regulatory Actions and Legal Consequences
“Do Kwon was sentenced to 15 years in prison by U.S. District Judge Paul Engelmayer, who called his crimes "a fraud of epic generational scale".”
reviewerDo Kwon was sentenced to 15 years in prison by U.S. District Judge Paul Engelmayer, who called his crimes 'a fraud of epic generational scale'Confirmed by multiple independent outlets (NBC, Decrypt, ForkLog): sentenced Dec 11, 2025 by Judge Paul Engelmayer in Manhattan, who called the fraud 'epic, generational scale' (page's quotation is a close paraphrase of this widely reported quote). - #10[confirmed][no action needed]in section: Regulatory Actions and Legal Consequences
“The SEC also fined Tai Mo Shan Limited (a Jump Crypto subsidiary) $123 million for allegedly misleading investors about UST's stability mechanism during a May 2021 price decline.”
reviewerSEC fined Tai Mo Shan Limited (Jump Crypto subsidiary) $123 million for misleading investors about UST's stability mechanism during a May 2021 price declineConfirmed by fetching the Finance Magnates article (live) and corroborating searches: $73.5M disgorgement + $12.9M interest + $36.7M penalty = ~$123.1M, tied to Tai Mo Shan's May 2021 UST-defense trading that was not disclosed to the market. - #13[confirmed][no action needed]in section: Bitcoin Reserve Controversy
“LFG said it transferred more than 50,000 bitcoins "to trade with a counterparty" on May 8, 2022, as the UST price was starting to slump.”
reviewerDuring the collapse, LFG depleted its BTC reserves from around 80,000 bitcoins to just 313; LFG transferred more than 50,000 bitcoins 'to trade with a counterparty' on May 8, 2022Matches LFG's own May 16, 2022 disclosure, which described transferring approximately 52,189 BTC gross 'to trade with a counterparty' beginning May 8, 2022, roughly consistent with 'more than 50,000.' - #15[confirmed][no action needed]in section: Bitcoin Reserve Controversy
“The final destination of the bitcoins remains unknown.”
reviewerThe final destination of the Jump-transferred bitcoins remains unknownMatches the PANews article, which quotes the lawsuit questioning whether Jump further enriched itself and states the destination is unclear. - #17[confirmed][no action needed]in section: Criminal Investigation and Arrest
“On September 14, 2022, a South Korean court issued an arrest warrant for Kwon and five others on allegations of violations of Korean capital markets law. On March 23, 2023, he was arrested in Montenegro while attempting to travel to Dubai using falsified documents.”
reviewerSouth Korean court issues arrest warrant for Kwon and five others on September 14, 2022; Kwon arrested in Montenegro March 23, 2023 using falsified documentsConsistent with widely reported facts; CNN coverage of the March 23, 2023 Montenegro arrest corroborates this. - #18[confirmed][no action needed]in section: Criminal Investigation and Arrest
“On June 19, 2023, Kwon and Terraform Labs' former finance officer Han Chang-joon were sentenced to four months' imprisonment by a Montenegrin court for using forged passports.”
reviewerKwon and Han Chang-joon sentenced to four months' imprisonment by a Montenegrin court on June 19, 2023 for forged passportsConfirmed by multiple contemporaneous reports (Fortune, Decrypt, Forkast, Finews.asia): both men received four-month sentences from a Podgorica court on/around June 19, 2023. - #19[confirmed][no action needed]in section: Criminal Investigation and Arrest
“In August 2025, Kwon changed his plea from not guilty to guilty on two counts of wire fraud and conspiracy to defraud, waiving his right to trial.”
reviewerIn August 2025, Kwon changed his plea from not guilty to guilty on two counts of wire fraud and conspiracy to defraud, waiving his right to trialConfirmed: Reuters and other outlets report Kwon pleaded guilty on August 12, 2025 in Manhattan federal court to one count each of conspiracy to defraud and wire fraud.
How this fits together. The reviewer reads the published page and its cited sources and records one finding per claim. A human moderator decides whether each proposed correction is applied; those decisions, and the score changes they cause, appear in the audit log. Earlier review runs are not shown here; only the latest reflects the page as it stands.