2025-12-12 07:21:38

Breaking News! Terra founder Do Kwon sentenced to 15 years!

This time, he's really caught. The U.S. court found that he committed multiple frauds in the epic collapse of TerraUSD and Luna, and sentenced him to 15 years in prison. As soon as the news broke, the entire Terra ecosystem's tokens plummeted again. LUNC, LUNA, USTC all tanked.

Honestly, this sentence is quite severe. That collapse back then wiped out hundreds of billions of dollars, leaving countless retail investors with nothing. Now, the shoe finally dropped, and regulators are cracking down hard this time.

The market reacted immediately—shorts laid in advance took profits directly. The name Terra will likely leave a heavy mark in crypto history, but not a glorious one. Veteran investors probably still remember the panic during the days of UST de-anchoring, right?

This also serves as a warning to the entire industry: playing with algorithmic stablecoins, regulation will eventually target you.

LUNA-6.39%

LUNC-4.76%

USTC-9.24%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
4
Repost
Share

Comment

0/400

BlockchainDecoder

· 11h ago

According to research, the deeper logic behind this verdict warrants a calm analysis. From a technical perspective, the algorithmic stablecoin mechanism of UST inherently carries systemic risks—the "castle in the air" design lacking sufficient collateral support. Data shows that the funds involved in that collapse approached the critical point of financial derivatives risk management. Interestingly, a 2019 Carlyle paper already pointed out the fragility of such designs, and the Do Kwon case serves as a real-world validation.

View OriginalReply0

SmartContractPhobia

· 12-12 07:50

It should have been sentenced more severely back then. Being cut off badly at that time, now seeing him go in makes me feel a bit better.

View OriginalReply0

CryptoCrazyGF

· 12-12 07:47

15 years? This guy is completely finished. I witnessed the UST collapse firsthand back then, watching the funds evaporate. Now there's finally an explanation. Do Kwon is directly going to jail now. How desperate must the Terra ecosystem people be? It seems that the path of algorithmic stablecoins really has to be played out completely. Basically, it's the deserved outcome for scammers. There's nothing to pity. How are the people who told me UST was stable back then doing now? Hahaha. This verdict is actually a positive for the market, at least it has cleared out a tumor.

View OriginalReply0

MoonRocketman

· 12-12 07:23

15 years ago, this time there's really no escape. RSI has already gone into overbought territory, and the entire trajectory has gone out of control and plummeted. LUNC has fallen to near ground level, and no one wants it. Do Kwon's launch window can be considered permanently closed; the gravitational acceleration of regulation is even harsher than I predicted. Back during the UST de-pegging, I knew that this angle coefficient couldn't hold up, and algorithmic stablecoins simply can't escape the constraints of escape velocity. Brothers who shorted early definitely made a profit this time, but honestly, hundreds of billions have evaporated, and retail investors' losses are even more red than meat. From now on, whenever you see any algorithmic stablecoin projects, just pass. The fuel isn't worth wasting.

View OriginalReply0

Trending TopicsView More
#GateNovTransparencyReportReleased
17.65K Popularity
#FedRateCutComing
683.22K Popularity
#PostonSquaretoEarn$50
63.7K Popularity
#BitcoinActivityPicksUp
17.75K Popularity
#CryptoMarketRebound
508.95K Popularity

Hot Gate FunView More

1
拼好饭拼好饭
MC:$3.69KHolders:2
0.00%
2
666拼好饭
MC:$3.64KHolders:2
0.04%
3
GWHALEGWhale
MC:$3.81KHolders:3
0.97%
4
BGOLDBGOLD
MC:$3.67KHolders:1
0.78%
5
HTBGHotBerg
MC:$3.7KHolders:2
0.02%

Sitemap