Crypto-crasher Do Kwon jailed for 15 years • The Register
Terraform Labs founder Do Kwon will spend 15 years in jail after pleading guilty to committing fraud.
Kwon’s company created a token called Terra USD (UST) and promoted it as a “stablecoin” that would always be valued at one US dollar.
That was easier said than done. Terraform Labs tried to make it happen with a complex scheme involving multiple protocols, a linked token called Luna, and smart contracts. In May 2022, the scheme unraveled spectacularly and the value of UST tokens fell from $1.00 to $0.09. Attempts to shore up the ecosystem by buying $3.5 billion of bitcoin didn’t work, and $40 billion of value evaporated in a puff of blockchain reverie.
Kwon is…
