← Terraform Labsreviewed 2026-10-15 · 20 claims checked
Fact-check findings
What an automated fact-checker found when it re-read Terraform Labs 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
4 claimsThe reviewer could not reconcile the claim with the evidence it cited. This is a lead, not a ruling that the claim is false.
- #8[disputed][awaiting moderator]in section: Alleged 2021 Secret Bailout and Jump Trading Arrangement
“https://www.coindesk.com/policy/2026/04/24/jane-street-asks-court-to-reject-terraform-claims-tied-to-ust-luna-crash”
reviewerA cited source on the alleged 2021 Jump Trading bailout supports that section's claims.This source is attached to the 'Alleged 2021 Secret Bailout and Jump Trading Arrangement' section but describes a different lawsuit against a different firm (Jane Street) over different conduct. It supports none of the section's claims and should be removed from this section (it may belong, if anywhere, on a claim about the separate Jane Street suit, which the page does not otherwise mention). - #14[disputed][awaiting moderator]in section: Bankruptcy Filing and Wind-Down
“CEO Chris Amani announced that the company would be completely winding down operations and asked the Terra community to take over management of the blockchain.”
reviewerIn September 2024, the bankruptcy judge approved the liquidation plan and, at that time, CEO Chris Amani announced the company would completely wind down and asked the community to take over the blockchain.The paragraph places the CEO's wind-down/community-handover announcement in the same September 2024 sentence as the judge's plan approval, but the announcement was made roughly three months earlier, in June 2024, right after the SEC settlement. The two of the page's own cited sources for this paragraph are dated June 13 and September 19, 2024 respectively, confirming the events are being conflated into one date.Proposed correction (not yet applied)In June 2024, CEO Chris Amani announced that the company would be completely winding down operations and asked the Terra community to take over management of the blockchain. - #15[disputed][awaiting moderator]in the timeline
“U.S. Bankruptcy Judge Brendan Shannon approves Terraform Labs' liquidation plan, establishing a Wind Down Trust. CEO Chris Amani announces complete wind-down and asks the Terra community to assume control of the blockchain.”
reviewerIn September 2024, CEO Chris Amani announced complete wind-down and asked the Terra community to assume control of the blockchain (timeline entry).Same underlying date-conflation error as the matching sections[5] finding; grouped under the same defect_group.Proposed correction (not yet applied)U.S. Bankruptcy Judge Brendan Shannon approves Terraform Labs' liquidation plan, establishing a Wind Down Trust. CEO Chris Amani had announced in June 2024 that the company would completely wind down and asked the Terra community to assume control of the blockchain. - #18[disputed][awaiting moderator]in section: Do Kwon: Arrest, Extradition, Guilty Plea, and Sentencing
“On December 11, 2025, U.S. District Judge cited losses of approximately $40 billion and described the scheme as 'a fraud on an epic, generational scale,' declining to follow the government's recommendation as 'unreasonably lenient' and imposing a 15-year federal prison sentence.”
reviewerOn December 11, 2025, the sentencing judge cited ~$40 billion in losses, called the scheme 'a fraud on an epic, generational scale,' rejected the government's 12-year recommendation as 'unreasonably lenient,' and imposed a 15-year sentence.The $40B figure, the quote, and the 'unreasonably lenient' characterization are all accurately reported, but the sentence as written omits the judge's name ('U.S. District Judge cited...'), reading as a grammatically incomplete and unsourced attribution. The judge's name, Paul Engelmayer, is public and well documented.Proposed correction (not yet applied)On December 11, 2025, U.S. District Judge Paul Engelmayer cited losses of approximately $40 billion and described the scheme as 'a fraud on an epic, generational scale,' declining to follow the government's recommendation as 'unreasonably lenient' and imposing a 15-year federal prison sentence.
confirmed
16 claimsThe cited evidence supports the claim as written.
- #1[confirmed][no action needed]in section: Background and Operations
“Terraform Labs Pte. Ltd. was incorporated in Singapore and co-founded in 2018 by Do Hyeong Kwon (Do Kwon) and Daniel Shin.”
reviewerTerraform Labs Pte. Ltd. was co-founded in 2018 by Do Kwon and Daniel Shin in Singapore.Consistent across Wikipedia and contemporaneous news coverage. - #2[confirmed][no action needed]in section: Background and Operations
“Kwon held a 92% ownership stake in the company; Shin held approximately 8%.”
reviewerKwon held a 92% ownership stake in Terraform Labs; Shin held approximately 8%.Confirmed via independent reporting on the bankruptcy petition, which is also where the page's later reference to this stake (sections[5]) is sourced from. - #3[confirmed][no action needed]in section: The May 2022 Collapse
“Beginning on approximately May 9, 2022, UST began losing its $1 peg. Over the following week, UST fell to roughly $0.10 while LUNA collapsed from an all-time high of approximately $119.51 to near zero.”
reviewerUST began losing its dollar peg around May 9, 2022; LUNA collapsed from an all-time high of approximately $119.51 to near zero within the following week; the blockchain was halted twice; roughly $40-45 billion in market capitalization was wiped out.Well-corroborated facts about the May 2022 collapse. - #4[confirmed][no action needed]in section: The May 2022 Collapse
“By May 16, 2022, LFG reported holding only 313 bitcoin remaining — a near-total depletion of the reserve.”
reviewerThe Luna Foundation Guard held approximately 80,394 BTC (~$2.4B) and this was depleted to 313 BTC by May 16, 2022.Directly supported by the cited source. - #5[confirmed][no action needed]in section: Alleged 2021 Secret Bailout and Jump Trading Arrangement
“Under this arrangement, Jump allegedly received the right to purchase millions of LUNA tokens at substantially below-market prices (alleged to be as low as $0.40 per token when market prices later exceeded $110).”
reviewerIn May 2021, Terraform Labs secretly arranged for Jump Trading (via Tai Mo Shan) to buy UST to restore the peg, and Jump received rights to buy LUNA at ~$0.40/token when market prices later exceeded $110.Page correctly hedges this as an allegation; the $0.40 figure and the gap versus market price are corroborated by independent litigation reporting, not just the single cited source. - #6[confirmed][no action needed]in section: Alleged 2021 Secret Bailout and Jump Trading Arrangement
“In December 2024, Jump's Tai Mo Shan affiliate agreed to pay $123 million to settle a separate U.S. regulatory investigation related to its dealings with Terraform in 2021.”
reviewerIn December 2024, Jump's Tai Mo Shan affiliate agreed to pay $123 million to settle a separate U.S. regulatory investigation.Figure and date confirmed by multiple independent outlets. - #7[confirmed][no action needed]in section: Alleged 2021 Secret Bailout and Jump Trading Arrangement
“Terraform Labs' bankruptcy administrator subsequently filed a $4 billion lawsuit against Jump Trading in late 2025, alleging Jump's actions contributed to the eventual collapse.”
reviewerTerraform Labs' bankruptcy administrator filed a $4 billion lawsuit against Jump Trading in late 2025.Accurately described, including the 'alleged' framing. - #9[confirmed][no action needed]in section: SEC Enforcement Action and Civil Fraud Jury Verdict
“On February 16, 2023, the U.S. Securities and Exchange Commission filed a civil complaint against Terraform Labs Pte. Ltd. and Do Hyeong Kwon in the U.S. District Court for the Southern District of New York (Case No. 23-cv-1346-JSR).”
reviewerOn February 16, 2023, the SEC filed a civil complaint against Terraform Labs and Do Kwon in SDNY, Case No. 23-cv-1346-JSR, alleging fraud regarding UST's 'self-healing' mechanism, the Chai payment app, and unregistered securities sales.Case number, court, and the three categories of alleged fraud are all accurately summarized from the complaint as described in the court's own opinion. - #10[confirmed][no action needed]in section: SEC Enforcement Action and Civil Fraud Jury Verdict
“On April 5, 2024, after less than two hours of deliberation, a Manhattan jury returned a unanimous verdict finding both Terraform Labs and Do Kwon liable on all counts of civil securities fraud.”
reviewerOn April 5, 2024, after less than two hours of deliberation, a Manhattan jury returned a unanimous verdict finding Terraform Labs and Do Kwon liable on all counts of civil securities fraud.The cited CoinDesk article directly supports the roughly two-hour window between closing arguments and verdict. - #11[confirmed][no action needed]in section: $4.47 Billion SEC Settlement
“The judgment against Terraform Labs required payment of $3,586,875,883 in disgorgement, $466,952,423 in prejudgment interest, and a $420,000,000 civil penalty.”
reviewerThe combined June 12, 2024 SEC settlement totaled ~$4.47 billion, split into Terraform's $3,586,875,883 disgorgement + $466,952,423 interest + $420,000,000 penalty, and Kwon's $110,000,000 disgorgement + $14,320,196 interest + $80,000,000 penalty.Precise dollar figures match SEC's own release and are corroborated by Bloomberg/CoinDesk reporting. - #12[confirmed][no action needed]in section: $4.47 Billion SEC Settlement
“with estimates suggesting creditor recoveries of between $185 million and $442 million from the estate — a fraction of total losses.”
reviewerBecause Terraform filed for bankruptcy, the SEC settlement is subordinated to creditor claims, with estimated creditor recoveries between $185 million and $442 million.Figures confirmed via independent reporting even though the directly cited ainvest.com source could not be fetched (403 response, possibly anti-bot rather than link rot). - #13[confirmed][no action needed]in section: Bankruptcy Filing and Wind-Down
“On January 21, 2024, Terraform Labs filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-10070), listing estimated assets and liabilities each in the $100 million to $500 million range, with between 100 and 199 creditors.”
reviewerOn January 21, 2024, Terraform Labs filed for Chapter 11 bankruptcy in Delaware (Case No. 24-10070), with assets/liabilities each $100M-$500M and 100-199 creditors.All figures and the case number check out. - #16[confirmed][no action needed]in section: Do Kwon: Arrest, Extradition, Guilty Plea, and Sentencing
“In March 2023, Do Kwon was arrested in Montenegro while allegedly attempting to board a flight to Dubai using a fraudulent passport.”
reviewerIn March 2023, Do Kwon was arrested in Montenegro while allegedly attempting to board a flight to Dubai using a fraudulent passport, and was held roughly 21 months before extradition.Minor simplification (page says 'a fraudulent passport' where reporting specifies a forged Costa Rican passport among several documents found on him) but not materially inaccurate. - #17[confirmed][no action needed]in section: Do Kwon: Arrest, Extradition, Guilty Plea, and Sentencing
“The plea agreement recommended a sentence of no more than 12 years.”
reviewerMontenegro approved extradition in December 2024 and Kwon was transferred to U.S. custody on December 31, 2024; he later pleaded guilty under a plea deal recommending no more than 12 years.Confirmed by multiple outlets covering the plea and sentencing. - #19[confirmed][no action needed]in section: Do Kwon: Arrest, Extradition, Guilty Plea, and Sentencing
“Kwon may also face a separate criminal trial in South Korea on charges including violations of the Capital Markets Act.”
reviewerKwon may also face a separate criminal trial in South Korea on charges including violations of the Capital Markets Act.Current and accurately hedged as a possibility rather than a certainty; this claim has no inline citation in the page's source list for this section, which is a minor sourcing gap but the claim itself checks out. - #20[confirmed][no action needed]in section: Investor Impact and Market Contagion
“The Terraform bankruptcy liquidation plan estimated investor creditor recoveries of between $185 million and $442 million — representing recovery of a small fraction of total losses.”
reviewerThe May 2022 collapse wiped out an estimated $40-45 billion, disproportionately harming retail investors drawn in by Anchor Protocol's ~20% yield; estimated creditor recoveries are $185 million to $442 million.Duplicate of the sections[4] creditor-recovery claim; consistent and correctly characterized both places.
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.