Fact check
Is it true: Terra/Luna algorithmic stablecoin collapse (Do Kwon, 2022)?
Yes — this is confirmed.
SEC charges filed February 2023; Do Kwon arrested Montenegro March 2023, extradited to US 2025, convicted. Internal communications confirmed Kwon knew of the May 2021 near-collapse and concealed it. Anchor's 20% yield was a Terraform-funded subsidy not organically generated. Jump Crypto paid to secretly defend the peg. ~$40B destroyed May 2022.
The claim
TerraUSD (UST) was an algorithmic stablecoin designed by Terraform Labs and its CEO Do Kwon. In May 2022, the UST peg collapsed, triggering a "death spiral" that wiped approximately $40 billion in mar
Key evidence
~$40 billion in market value destroyed May 2022
May 2021 near-collapse concealed from public
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