Summary
Mirror Protocol was a Terra-based DeFi platform enabling synthetic assets (mAssets) that tracked prices of US stocks. The protocol suffered a $90 million exploit in October 2021 that went undetected for seven months, a governance attack campaign in December 2021 targeting $40 million in community funds, and a second $2 million oracle exploit in May 2022. It became permanently inactive in August 2022 following the catastrophic collapse of the Terra/LUNA/UST ecosystem, which was orchestrated by its parent company Terraform Labs under Do Kwon, who was subsequently convicted of fraud and sentenced to 15 years in prison.
Connected Entities
2 entities · 1 linked investigation- + 13 more
Connected Through
1 shared actor · 1 investigationDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- ⌂Mirror Protocolprotocolalso inMirror Protocol·4
Timeline(22 events)
2018-01-01
Do Kwon and Daniel Shin co-found Terraform Labs, the parent company of Mirror Protocol.
2020-12-01
Mirror Protocol launches on the Terra blockchain, enabling synthetic stock trading via mAssets.
2021-05-07
The SEC opens an investigation into Terraform Labs over Mirror Protocol's potential offering of unregistered securities.
2021-06-01
Mirror Protocol crosses $2 billion in total value locked (TVL), becoming a top-15 DeFi protocol.
2021-09-17
The SEC issues subpoenas to Terraform Labs and Do Kwon personally regarding Mirror Protocol.
2021-09-20
Do Kwon is served the SEC subpoena at the Messari Mainnet 2021 conference in New York City.
2021-10-08
Attacker begins exploiting the lock contract duplicate-ID vulnerability in Mirror Protocol, ultimately draining approximately $90 million over subsequent months. The exploit goes undetected.
2021-12-24
A coordinated governance attack campaign is launched against Mirror Protocol, with malicious polls (IDs 185, 198, 204, 206, 207, 208) targeting approximately $40 million from the community pool. The most prominent, Poll 211, targets 25 million MIR tokens (~$64.2 million). The attack is timed to coincide with holiday periods.
2021-12-27
Mirror Protocol team issues emergency governance warning via Poll 212, alerting the community to the fraudulent proposals. The community votes to reject all malicious proposals; no funds are stolen.
2022-05-07
UST begins losing its dollar peg, triggering the Terra/LUNA ecosystem collapse.
2022-05-12
The Terra blockchain is halted. UST falls to approximately $0.10; LUNA collapses to near zero from an all-time high of $119.51. Approximately $45 billion in market capitalization is wiped out.
2022-05-14
Mirror Protocol developers silently patch the lock contract vulnerability — the entry point for the $90 million October 2021 exploit — with no public announcement or user notification.
2022-05-27
FatManTerra publishes findings on the $90 million exploit, prompting public scrutiny of Mirror Protocol's silent patch.
2022-05-28
A second exploit begins, exploiting a LUNC oracle mispricing to drain Mirror's mBTC, mETH, mDOT, and mGLXY pools. Over $2 million is extracted.
2022-05-30
The Block and CoinDesk report on both the $90 million historical exploit and the new oracle exploit. BlockSec publicly criticizes Mirror's silent patch practice.
2022-06-08
A U.S. appeals court overrules Do Kwon's challenge to the SEC subpoenas, ordering Terraform Labs and Kwon to comply with the investigation into Mirror Protocol.
2022-08-15
Band Protocol announces it will cease providing price feeds for Terra Classic products, citing the UST collapse and Mirror Protocol team's failure to respond to queries about the protocol's future.
2022-08-26
Band Protocol formally ends price feed support. Mirror Protocol ceases all operations permanently. The protocol is effectively abandoned.
2023-03-01
Do Kwon is arrested in Montenegro while allegedly attempting to travel on forged documents.
2024-12-31
Do Kwon is extradited to the United States to face federal fraud charges.
2025-08-01
Do Kwon pleads guilty in the Southern District of New York to wire fraud and conspiracy to commit securities fraud, commodities fraud, and wire fraud.
2025-12-11
U.S. District Judge Paul A. Engelmayer sentences Do Kwon to 15 years in federal prison, describing his crimes as 'fraud on an epic, generational scale.' Kwon forfeits over $19 million.
Decision Log
- hash: HqmS6n8hq7e92Q9kdv21XxNm9yW11FE7GKpfGo4kWcYm
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:53 AM
last updated: 5/21/2026, 5:13:05 PM
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