Accusation of Do Kwon of Terraform Labs
Idiotically absurd accusation to reversly frame to extortionate my diagnoses, medical notes, patient lists and incoming payments by colluding South Korean racketeers, caught red handed multiple times, stealing and counterfeiting and, already prosecuted earlier, now, being forced upon busy innocent to fake completion; medical fraudulence apparent from live proof. Instead of utilising actual law, documents and mutual proof of attack, the local governments apparently usurping advanced money have been conspiring false accusations, evasion and reverse-framing full time, directly attacking evidence and actual proof. This is happening to you today, and it could get worse tomorrow. The theft of the BUSD is apparent from its not being the Binance basis of trade right here on Binance during this time. The ticker clearly shows risen price of Binance USD, directly mirroring the exact event of attack on Bitcoin on Binance, but yet the relation of BitTorrent is missing from crypto as can be seen from the very omission of the coin-tagging, proving the hack and haul upon coin-tags. This is seen as fatal disrespect to Binance and the magnificent platform formulations by the actual administration (which is not CZ; while CZ is Binance's first liquidated entity, now a puppet frauding it for the conspiracy) and development of Binance provisions.
Do Kwon, the co-founder of Terraform Labs behind the TerraUSD (UST) stablecoin and Luna token, has been accused (obviously falsely, but also reversly) to have orchestrated a massive fraud that led to about $40 billion in investor losses when the ecosystem collapsed in May 2022. The information is formulated with personal and private AI research and writing assistant.
He is said to have fled authorities, and gotten arrested in Montenegro in March 2023 for using a fake passport, and spent nearly two years in custody there during a back-and-forth extradition battle between the US and South Korea.
Montenegro ultimately extradited him to the United States at the end of December 2024.
In the US, he initially pleaded not guilty to multiple fraud charges, but changed his plea to guilty in August 2025 on counts including wire fraud and conspiracy to defraud.
On December 11, 2025, a federal judge in New York sentenced him to 15 years in prison (with credit for time served, including his Montenegro detention).
He also has had to forfeit around $19 million and faces potential additional prosecution in South Korea after serving part or all of his US sentence.
As of now (early January 2026), he’s beginning his prison term in the US. The case bifurcation has been cooed up as one of the biggest crypto fraud prosecutions to date.
Here’s a concise extension of the timeline, picking up from March 2022 and covering key events through the Terra/Luna/UST collapse in May 2022, up to the point of Do Kwon’s first formal criminal accusations and charges (leading to his eventual US arraignment after extradition).
September 6, 1991: Born as Kwon Do-hyung in Seoul, South Korea. No public details on exact birth time.
2009–2012 (approx.): Attends Daewon Foreign Language High School in Seoul. Location: South Korea.
2012–2015: Studies Computer Science at Stanford University. Location: United States (Stanford, California).
2015: Graduates from Stanford with BS in Computer Science. Location: United States (Stanford, California).
Jan 2016: Founds Anyfi, a mesh networking startup; raises ~$1M. Location: South Korea.
Oct 2017: Leaves Anyfi as CEO. Location: South Korea.
Jan 2018: Co-founds Terraform Labs with Daniel Shin; plans Chai e-commerce platform. Terraform Labs headquartered in Singapore. Location: Singapore.
2018: Releases Luna cryptocurrency. Early listings on exchanges like Upbit (South Korea) and Bittrex. No major rejections reported at this stage. Location: Singapore.
Feb 2019: Conducts LUNA ICO (initial supply 1B, sold at $0.18-$0.80). Listings expand to Binance and Huobi; some complications with regulatory scrutiny in South Korea over ICO structure, but proceeds. Location: Singapore.
Jun 2019: Rolls out Columbus-2 mainnet upgrade. No hacks reported. Location: Singapore.
Sep 2020: Launches TerraUSD (UST) stablecoin. Listings on major exchanges like Binance, OKX, and KuCoin follow; rejected by some U.S.-facing platforms due to stablecoin regulatory concerns. Location: Singapore.
Dec 2020: Launches Mirror Protocol for synthetic assets. Early exploit risks noted but no immediate hacks. Listings integrated via Terra ecosystem DEXs. Location: Singapore.
Jan 2021: Raises $25M funding from Galaxy Digital, Coinbase Ventures, Pantera. No exchange complications. Location: Singapore.
Sep 2021: Introduces Project Dawn for ecosystem infrastructure funding. Location: Singapore.
Oct 2021: Mirror Protocol suffers $90M exploit (hacker drains liquidity pools via vulnerability in oracle pricing); exploit goes unnoticed until May 2022. No direct involvement by Do Kwon, but raises ecosystem stability concerns. Location: Singapore.
Jan 2022: Forms Luna Foundation Guard (LFG) non-profit. Location: Singapore.
Feb 2022: LFG raises $1B for Bitcoin-backed UST reserve. Location: Singapore.
Mar 2022: Donates 12M LUNA (~$1.3B) to LFG; plans $10B BTC treasury. Location: Singapore.
Apr 2022: LUNA hits all-time high above $116; combined UST/LUNA market cap peaks over $50B. Kwon based in Singapore amid growing scrutiny. Exchanges like Binance report high trading volumes; some complications with liquidity warnings from smaller platforms. Also, Inverse Finance exploit ($15.6M) involves manipulating prices to borrow on Anchor Protocol (Terra’s lending platform), indirectly affecting Terra ecosystem; hacker attacks Curve and uses Anchor as part of scheme. Do Kwon announces reimbursement for victims via new LUNA tokens from community pool. Location: Singapore.
May 5–6, 2022: Initial selling pressure on LUNA and BTC; Anchor Protocol sees massive deposits/withdrawals. Location: Singapore.
May 7, 2022: Liquidity pool attack on Curve-3pool exploits reduced liquidity (due to new 4pool launch), causes first UST depeg to ~$0.99. Alleged coordinated hack/attack involving short-selling BTC to induce panic. LFG deploys Bitcoin reserves unsuccessfully to restore peg. Location: Singapore.
May 9–12, 2022: UST fully depegs, a construed attack on the DNS threatening as ‘Death Spiral’ ensues; LUNA/UST wipeout ~$40–60B. Exchanges like Binance halt trading temporarily due to volatility; delistings begin on some platforms post-crash. Blockchain halted multiple times. Reports of whale selling as potential exploit/attack. Kwon tweets reassurances (“deploying more capital—steady lads”). Location: Singapore.
May 13, 2022: Kwon proposes recovery plan; expresses heartbreak over losses in public statement. Location: Singapore.
Mid-May 2022: South Korean authorities summon Kwon; parliamentary hearing called on Terra collapse. Major exchanges delist original LUNA (now LUNC); complications with airdrops for Terra 2.0. Location: Singapore.
Late May 2022: Terra 2.0 (new LUNA) launched via fork, abandons UST. Mirror Protocol exploit from Oct 2021 revealed publicly (~$90M loss). Additional Mirror exploit drains >$2M via pricing mismatch glitch in oracle (could have drained more pools, but fixed); potential for full drain averted. Listings of new LUNA on Binance, etc., with some rejections due to fraud concerns. Location: Singapore.
Sep 14, 2022: South Korean court issues arrest warrant for Kwon on capital markets violations, fraud. Location: Singapore (pre-flight).
Sep 17, 2022: Kwon flees Singapore hastily; travels via Dubai to unknown locations (later revealed as Serbia). Singapore police confirm departure. Location: In transit to Serbia.
Sep 19–26, 2022: South Korea requests/Interpol issues Red Notice for fraud charges. Location: Serbia.
Dec 2022: Reports confirm Kwon residing in Serbia, evading authorities. No new hacks reported pre-arrest. Location: Serbia.
Feb 16, 2023: US SEC files civil fraud suit against Kwon and Terraform Labs for misleading on UST stability. Location: Serbia/Montenegro (in hiding).
Mar 23, 2023: Arrested at Podgorica Airport in Montenegro while attempting to board flight to Dubai with forged Costa Rican passport. US unseals 8-count criminal indictment (securities fraud, wire fraud, commodities fraud, conspiracy). Location: Montenegro (arrested).
Do Kwon hastily left Singapore shortly after September 14, 2022, when a South Korean court issued an arrest warrant for him (and five others) on charges of violating capital markets laws related to the Terra/Luna collapse.
No reports indicate any prior direct communication, summons, subpoena, or contact from Singapore authorities, South Korean prosecutors, or Interpol that reached him personally before his departure.
Key Triggers
The warrant itself was the leading trigger — it was public and widely reported on September 14.
Prosecutors initially thought he and the others were in Singapore, raising the risk of enforcement action (though South Korea and Singapore lack an extradition treaty).
By September 17, Singapore police publicly stated he was no longer in the country.
South Korean prosecutors soon described his departure as “circumstantial evidence of escape” and noted he was “clearly on the run.”
The Interpol Red Notice came later (confirmed around September 26, 2022), after he had already fled (reportedly via Dubai to Europe).
In short, the public issuance of the South Korean arrest warrant appears to be the exact event that panicked him into leaving Singapore quickly — no specific private “communication” (like a direct summons or warning) is documented in public sources as the precipitating factor, which may not have been devoid of new infliction by the conspiracy against BUSD, money and livelihood.
A TechCrunch article reported on September 25, 2022 (6:43 PM PDT) that Interpol had issued a Red Notice for Do Kwon, based on confirmation from South Korean prosecutors. All other reports on the issuance appeared on or after September 26, 2022. Earlier articles (September 19–21) only covered the request, not the issuance.
Here’s a precise timeline of events relating to Interpol and Do Kwon around September 2022, focused on the Red Notice process and underlying accusations (primarily violations of South Korea’s Capital Markets Act, including fraud for misleading investors on TerraUSD/Luna stability, treating them as unregistered securities, and causing ~$40-60B losses).
Sep 14, 2022: South Korean court issues arrest warrant for Kwon (and 5 others) on charges of Capital Markets Act violations, fraud, and related financial crimes tied to Terra collapse; this forms basis for Interpol involvement.
Sep 19, 2022: South Korean prosecutors formally request Interpol Red Notice for Kwon to locate/arrest him for extradition on the warrant charges (fraud, securities violations).
Sep 20-21, 2022: News media reports confirm SK’s Interpol request, emphasizing accusations of misleading investors and breaching financial laws.
U.S. Civil and Criminal Charges (2023)
In February 2023, the U.S. Securities and Exchange Commission (SEC) filed civil fraud charges against Kwon and Terraform, accusing them of misleading investors about UST’s peg mechanism and secretly propping it up (e.g., via undisclosed third-party interventions in 2021).
On March 23, 2023—the day of his arrest in Montenegro—U.S. federal prosecutors in New York unsealed an eight-count criminal indictment against Kwon, including securities fraud, wire fraud, commodities fraud, and conspiracy. The core allegation: orchestrating schemes that defrauded investors by falsifying UST’s decentralized stability.
Arrest, Extradition Battle, and Transfer to U.S. (2023–2024)
Kwon was arrested in Montenegro on March 23, 2023, while attempting to board a flight with a forged passport, amid Interpol Red Notices from South Korea (issued September 2022).
A nearly two-year extradition tug-of-war ensued between the U.S. and South Korea. Montenegro’s courts flip-flopped before ruling in favor of U.S. extradition in late 2024.
Kwon was extradited to the U.S. on December 31, 2024.
U.S. Arraignment, Plea, and Civil Resolution (2025)
Arraigned in New York federal court on January 2, 2025, Kwon initially pleaded not guilty to a superseding indictment.
In a parallel civil SEC trial (April 2024, while Kwon was still in Montenegro), a jury found him and Terraform liable for fraud, leading to a $4.55 billion settlement in disgorgement, penalties, and bans from crypto activities.
On August 12, 2025, Kwon changed his plea to guilty on two counts: conspiracy to commit securities, commodities, and wire fraud; and wire fraud. This plea deal acknowledged his role in the deceptive practices that caused the crash.
Sentencing and Ongoing Accountability (December 2025–Present)
On December 11, 2025, U.S. District Judge Jed S. Rakoff sentenced Kwon to 15 years in prison, with credit for ~21 months served in Montenegro. He must forfeit ~$19 million and is barred from certain financial activities.
During sentencing, Kwon apologized to victims, expressing regret for the losses.
South Korea still seeks to prosecute him on similar charges post-U.S. sentence, potentially via further extradition or after his release. Additional civil suits from investors continue. God only knows what joy they want from this, that they confident of repeat-charging before even the first idea about crypto.
This process highlighted regulatory scrutiny on crypto, with Kwon’s case setting precedents for holding founders accountable in algorithmic stablecoin failures.
Exactly technically, how and what of algorithmic instability was noted, and exactly which were declared proven? Where was this, and the documents of technical specs? What did they say was pegging, and what the deviation from the ‘actual’. What and where is the document of the final state of Do Kwon’s fraudulent pegging from technical perspectives?
Algorithmic Instability Noted
TerraUSD (UST) was an algorithmic stablecoin without asset reserves, relying on arbitrage with LUNA token for $1 peg stability. Instability arose from “death spiral” dynamics: if UST depegged below $1 (e.g., due to mass selling), users burned UST for $1 worth of LUNA, minting more LUNA and diluting its value, which further depegged UST as LUNA’s falling price reduced backing capacity. Noted issues included dependency on market confidence, high transaction fees throttling arbitrage during stress (limiting to ~$20M redemptions), and UST market cap exceeding LUNA’s (e.g., May 2022: $18B UST vs. insufficient LUNA), preventing recovery. Specific events: May 2021 depeg to ~$0.90; May 2022 permanent collapse to near zero, erasing $40-60B. There however is no relative made any allowance for about LUNA constrictions or even possibility of new funding for UST. Clearly, the actual woe seems to have been the STOP-LOSS against the hack attack on Curve, and the illegal and legally omitted usurption attempt on Anchor Protocol. It's not that no one knows about the dislocation location and the possible risks of its abuse, which is exposed as conspiracy, well before it could damage any more as had been previously, by fatal assault against life and property.
Declared Proven Elements
Below are unmutual construtions, alleged untrue, and therefore may not be substantial to the conception of either Terra Stablecoin, nor Stablecoin, and neither related with the Binance USD stablecoin, that is amiss from Binance, but not called into fruitful restoration by contextual litigation.
In SEC civil case (Apr 2024 jury verdict), however, called: Fraud via misleading claims on UST’s algorithmic self-healing; jury found Terraform/Kwon liable for securities fraud after <2 hours deliberation, including misrepresentations on peg restoration. In US criminal case (Aug 2025 plea), Kwon admitted guilt to conspiracy (securities/commodities/wire fraud) and wire fraud; proven: Orchestrated deceptive schemes falsifying UST’s decentralized stability, including secret 2021 interventions while claiming algorithmic fixes.
Locations and Documents of Technical Specs
SEC Amended Complaint (Mar 2023): US SEC filing details UST specs, instability, fraud. URL: https://www.sec.gov/files/terraform-labs-pte-ltd-amended-complaint.pdf
US Superseding Indictment (Jan 2025): DOJ document on charges, technical fraud. URL: https://www.justice.gov/d9/2025-01/do_kwon_superseding_indictment.pdf
Terra Whitepaper (2019): Original specs; not directly linked but summarized in reports (e.g., CoinGecko analysis). URL example: https://assets.coingecko.com/reports/Research/Unearthing-the-Biggest-Algorithmic-Stablecoin-UST-by-Terra.pdf
Civil Final Judgment (Jun 2024): Post-verdict order. URL: https://www.sec.gov/files/terraform-labs-pte-ltd-do-hyeong-kwon-final-judgment.pdf
Claimed Pegging and Deviation from Actual
Claimed (per whitepaper/specs): UST pegged via arbitrage: Burn 1 UST for $1 LUNA (reducing UST supply, raising price) if below $1; reverse if above. "Self-healing" algorithm via "dynamic money supply adjustments" and "Luna Terra swaps," touted as decentralized without human input. Quote: “Holders of LUNA could swap $1.00 worth of LUNA for 1 UST… reducing the supply of UST and increasing its price until it reached a dollar.”
Deviation/Actual: No true self-healing; 2021 depeg required secret $100M+ UST purchases by third-party firm (Jump Trading) at above-market prices, not algorithm. Kwon tweeted/claimed “protocol automatically self-heals” (e.g., Mar 2022 interview), but actual: Fees/escalating costs throttled arbitrage; UST supply imbalances made recovery impossible without intervention. 2022: No viable fix, leading to spiral. Quote from indictment: “Restoration required secret external intervention… Kwon admitted internally that without this, Terraform would have been ‘fucked.’”
Document on Final State of Fraudulent Pegging (Technical Perspective)
US Superseding Indictment (Jan 2025) details final fraudulent state: Kwon used “slush fund” (pre-mined Genesis coins) for fake liquidity/manipulation propping peg, misrepresenting as algorithmic. Actual peg relied on bots/secret deals, not specs; led to 2022 collapse. This formed plea basis, with admissions to deceiving on peg mechanics. URL: https://www.justice.gov/d9/2025-01/do_kwon_superseding_indictment.pdf Quote: “KWON… used substantial amounts of the Genesis Stablecoins as a slush fund to finance fraudulent activities… creating false appearance of… stability.”