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{"actor":"system:backfill","investigation_id":"c63276f5-7405-40aa-b76a-a6ba2204fae5","kind":"publish","page_slug":"terra-20","published_at":"2026-05-28T03:34:36.251Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Terra 2.0","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://en.wikipedia.org/wiki/Terra_(blockchain)","type":"other","url":""},{"credibility":3,"name":"https://corpgov.law.harvard.edu/2023/05/22/anatomy-of-a-run-the-terra-luna-crash/","type":"other","url":""},{"credibility":3,"name":"https://www.okx.com/en-us/learn/terra-collapse-ust-luna-stablecoin","type":"other","url":""},{"credibility":3,"name":"https://coincodex.com/article/22749/what-happened-to-luna/","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.fastcompany.com/90756342/terra-luna-relaunch-crypto-blockchain-explained","type":"other","url":""},{"credibility":3,"name":"https://capital.com/en-int/analysis/terra-luna-2-0","type":"other","url":""},{"credibility":3,"name":"https://cryptonews.net/news/altcoins/7610723/","type":"other","url":""},{"credibility":3,"name":"https://stakely.io/blog/terra-2-what-you-need-to-know-about-the-terra-revival-plan","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.sec.gov/newsroom/press-releases/2023-32","type":"other","url":""},{"credibility":3,"name":"https://www.sec.gov/newsroom/press-releases/2024-73","type":"other","url":""},{"credibility":3,"name":"https://www.bloomberg.com/news/articles/2024-04-05/do-kwon-and-terraform-labs-found-liable-for-fraud-in-sec-trial","type":"other","url":""},{"credibility":3,"name":"https://www.cnbc.com/2023/02/16/sec-charges-do-kwon-with-fraud-in-connection-with-terra-collapse.html","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.justice.gov/usao-sdny/pr/do-kwon-pleads-guilty-fraud","type":"other","url":""},{"credibility":3,"name":"https://www.justice.gov/usao-sdny/pr/do-kwon-extradited-united-states-montenegro-face-charges-relating-fraud-resulting-40","type":"other","url":""},{"credibility":3,"name":"https://www.justice.gov/usao-sdny/pr/crypto-enabled-fraudster-sentenced-orchestrating-40-billion-fraud","type":"other","url":""},{"credibility":3,"name":"https://thedefiant.io/news/people/terra-founder-do-kwon-sentenced-to-15-years-in-prison","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/policy/2025/08/12/terraform-s-do-kwon-pleads-guilty-to-conspiracy-wire-fraud-in-ust-blow-up","type":"other","url":""},{"credibility":3,"name":"https://www.cnbc.com/2025/08/12/do-kwon-pleads-guilty-to-us-fraud-charges-in-40-billion-crypto-collapse.html","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://techcrunch.com/2024/01/21/terraform-labs-files-for-chapter-11-bankruptcy/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/317414/terraform-labs-gets-sign-off-from-us-bankruptcy-judge-to-begin-winding-down-reuters","type":"other","url":""},{"credibility":3,"name":"https://www.sec.gov/enforcement-litigation/distributions-harmed-investors/sec-v-terraform-labs-pte-ltd-do-hyeong-kwon-no-23-cv-1346-jsr-sdny","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://corpgov.law.harvard.edu/2023/05/22/anatomy-of-a-run-the-terra-luna-crash/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/230590/terra-death-spiral-turns-one-searching-for-silver-linings-among-the-wreckage","type":"other","url":""},{"credibility":3,"name":"https://f1coins.com/news/nansen-report-reveals-terra-caused-the-steth-depeg-and-crippled-celsius-3ac","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://cryptopotato.com/scam-luna-2-0-tokens-are-already-running-wild/","type":"other","url":""},{"credibility":3,"name":"https://cryptoslate.com/scammers-looking-to-take-advantage-of-luna-2-0-airdrop/","type":"other","url":""},{"credibility":3,"name":"https://www.fxstreet.com/amp/cryptocurrencies/news/scam-alert-how-to-avoid-trouble-on-terras-luna-20-airdrop-202205271122","type":"other","url":""},{"credibility":3,"name":"https://www.businesstoday.in/crypto/story/luna20-scam-scammers-fake-luna20-airdrop-on-day-of-launch-335317-2022-05-27","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://capital.com/en-int/analysis/terra-luna-2-0","type":"other","url":""},{"credibility":3,"name":"https://coinmarketcap.com/cmc-ai/terra-luna-v2/latest-updates/","type":"other","url":""},{"credibility":3,"name":"https://coinmarketcap.com/cmc-ai/terra-luna-v2/what-is/","type":"other","url":""}]}],"sources_used":[],"summary":"Terra 2.0 (LUNA) is a replacement blockchain launched in May 2022 by Terraform Labs following the catastrophic collapse of the original Terra network and its algorithmic stablecoin TerraUSD (UST), which erased approximately $40–60 billion in market value in one week. The project's founder, Do Kwon, was arrested in March 2023, found liable for securities fraud in a U.S. civil trial in April 2024, pleaded guilty to wire fraud and conspiracy in August 2025, and was sentenced to 15 years in federal prison in December 2025. Terraform Labs itself filed for Chapter 11 bankruptcy in January 2024 and received court approval to wind down operations by September 2024, leaving Terra 2.0 as a severely diminished chain with minimal developer activity and an approximately 79% year-over-year decline in token value.","timeline":[{"date":"2018-01-01","event":"Terraform Labs founded by Do Hyeong Kwon and Daniel Shin in Singapore.","source":""},{"date":"2022-05-07","event":"TerraUSD (UST) begins to depeg from $1.00 following a large sell-off in the Curve Finance liquidity pool.","source":""},{"date":"2022-05-09","event":"UST loses its dollar peg decisively. Luna Foundation Guard begins deploying Bitcoin reserves to defend the peg.","source":""},{"date":"2022-05-12","event":"LUNA supply hyperinflates from ~343 million to over 6.5 trillion tokens. Both UST and LUNA collapse to near zero. Terra blockchain is halted.","source":""},{"date":"2022-05-16","event":"Terra blockchain resumes but UST and LUNA remain effectively worthless. Estimated $40-60 billion in market value destroyed.","source":""},{"date":"2022-05-25","event":"Terra community approves Governance Proposal 1623, authorizing a new chain — Terra 2.0 — without an algorithmic stablecoin.","source":""},{"date":"2022-05-28","event":"Terra 2.0 blockchain launches. New LUNA tokens airdropped to pre-collapse and post-collapse holders. Original chain renamed Terra Classic (LUNC).","source":""},{"date":"2022-06-15","event":"Three Arrows Capital fails to meet margin calls, triggering a cascading series of crypto firm bankruptcies attributed in part to Terra contagion.","source":""},{"date":"2022-09-01","event":"Interpol issues Red Notice for Do Kwon after South Korean authorities issue an arrest warrant and revoke his passport.","source":""},{"date":"2023-02-16","event":"SEC files civil fraud complaint against Terraform Labs and Do Kwon in the Southern District of New York.","source":""},{"date":"2023-03-23","event":"Do Kwon arrested at Podgorica Airport, Montenegro, while attempting to board a flight to Dubai with falsified Costa Rican documents.","source":""},{"date":"2024-01-21","event":"Terraform Labs files for Chapter 11 bankruptcy in Delaware, listing assets and liabilities each in the $100M-$500M range.","source":""},{"date":"2024-04-05","event":"Jury unanimously finds Terraform Labs and Do Kwon liable for securities fraud in the SEC's civil trial in SDNY, after less than two hours of deliberation.","source":""},{"date":"2024-06-12","event":"Court orders Terraform Labs and Do Kwon to pay more than $4.5 billion — $3.59B in disgorgement, $467M in prejudgment interest, and $420M in civil penalties.","source":""},{"date":"2024-09-19","event":"U.S. Bankruptcy Court approves Terraform Labs' Chapter 11 wind-down plan, establishing a Wind Down Trust and Crypto Loss Claims process.","source":""},{"date":"2024-12-27","event":"Montenegro's Minister of Justice signs extradition order sending Do Kwon to the United States.","source":""},{"date":"2024-12-31","event":"Do Kwon arrives in U.S. custody and makes initial appearance in Manhattan federal court.","source":""},{"date":"2025-08-12","event":"Do Kwon pleads guilty in Manhattan federal court to conspiracy to commit fraud and wire fraud in connection with the $40 billion Terra collapse.","source":""},{"date":"2025-12-12","event":"U.S. District Judge Paul Engelmayer sentences Do Kwon to 15 years in federal prison, three years above the prosecutors' recommended sentence.","source":""}]},"v":1}