US prosecutors have estimated that Terraform Labs co-founder Do Kwon could have more than a million victims worldwide following the ecosystem's collapse.
Victims of Terra's collapse
In a January 6 filing in the US District Court for the Southern District of New York, Acting US Attorney Daniel Gitner notified the court of procedures to inform Kwon’s victims of their rights in the criminal case. According to the US Attorney, the government would set up a website about public proceedings in Kwon’s case, as other methods for affording victims their rights were 'impracticable.' Estimates indicate that the number of victims in this case exceeds hundreds of thousands of individuals and entities, potentially totaling more than one million.
Do Kwon's first court appearance in the US
Do Kwon appeared before a US judge on January 2 following his extradition from Montenegro. He pleaded not guilty to nine felony charges related to fraud at Terraform and agreed to be held in detention.
Charges against Do Kwon and his potential consequences
Following the collapse of the Terra ecosystem in 2022, which contributed to a downturn in the crypto market, Do Kwon was arrested in Montenegro on unrelated charges in 2023. He was later turned over to US custody in December 2024. In April 2024, a US judge found Kwon and Terraform liable for fraud as part of the civil case filed by the US Securities and Exchange Commission.
Do Kwon faces fraud charges alongside other notable crypto executives. The future proceedings and their outcomes may further impact the crypto industry.
