Do Kwon’s Victims Could Exceed One Million

According to court documents, US prosecutors believe that more than one million investors from around the world lost around $40 billion in the collapse of Terra-LUNA. This information was revealed in a criminal case against Do Kwon, the co-founder of Terraform Labs, on January 6th.

Acting US Attorney Daniel Gitner filed a notification in the US District Court for the Southern District of New York, explaining the steps being taken to inform victims of their rights.

Due to the large number of people and entities impacted, the government plans to create a dedicated website to handle the proceedings, as other methods would be impractical. Gitner also mentioned the difficulty in quantifying the number of victims, as many transactions were conducted on foreign exchanges or through unidentifiable crypto wallets.

However, authorities believe that hundreds of thousands of individuals and entities may have been affected by the collapse of Terra-LUNA. Do Kwon appeared before a New York judge on January 2, after being extradited from Montenegro. He pleaded not guilty to nine fraud charges related to Terraform and agreed to stay in detention. This concluded a legal battle that spanned multiple countries.

Kwon was arrested in March 2023 in Montenegro while trying to board a flight to Dubai using a forged passport. After serving a four-month sentence for document fraud, he was approved for extradition to the US in December 2024, ending a dispute with South Korea, where he is also facing charges.