Nov 14, 2025
Law and Order
CFO Convicted for Losing $35 Million of Company Money in Crypto Side Hustle
A Washington man was convicted in a federal jury trial this week for taking tens of millions of dollars from the company he worked for—and losing nearly all of it in a botched crypto play. Nevin Shetty, 41, was found guilty Thursday on four counts of wire fraud for taking and misusing some $35 million worth of funds from a private software company where he worked as CFO. Though Shetty himself drafted a conservative investment policy for the startup—which called for its money to be invested onl...
Sep 8, 2025
Law and Order
Do Kwon’s Claim for $15M Luxury Ardmore Penthouse Payment Rejected
The Singapore High Court has ruled that Terraform Labs founder Do Kwon will not be able to claim back a $15.1 million down payment on a luxury apartment, after he failed to complete the sale due to facing criminal charges. Before the public collapse of his crypto project, according to local media, Kwon and his wife had signed a 16-month lease in early 2022 for the four-bedroom penthouse of the luxury Sculptura Ardmore apartment complex. The pair paid $15.1 million (S$19.4 million), which account...
Aug 12, 2025
Law and Order
Do Kwon Pleads Guilty Over $40 Billion Terra Collapse
Alleged crypto crook Do Kwon—who was behind the failed crypto project Terra—has entered a guilty plea in the United States' case against him, according to New York courthouse reporting Tuesday. Kwon had previously pleaded not guilty to nine criminal charges in the U.S., including securities, wire, and commodities fraud, plus conspiracy to commit money laundering. But on Monday, a court document showed that a change of plea was expected as a conference was scheduled for Tuesday. Kwon ultimately p...
Mar 30, 2025
Coins
Terraform Labs Creditors Have a Month to Submit Claims for Losses
Terraform Labs has opened an online portal for investors to submit compensation claims for financial losses stemming from the May 2022 de-pegging of TerraUSD. Managed by administrators at New York-based Kroll, the portal will open on Monday, March 31 and close on April 30, giving loss-making investors a month to file claims. Applicants will have to submit evidence supporting their filings, including wallet addresses in which Terra-based cryptocurrencies were held, as well as transaction logs for...
Mar 28, 2025
Law and Order
Galaxy Digital Agrees to $200 Million Settlement Over LUNA 'Misrepresentations'
The New York Attorney General and Galaxy Digital have agreed to a settlement over the crypto firm’s handling of the collapsed Terra LUNA cryptocurrency, with the agreement requiring Galaxy to pay $200 million for alleged violations of the Martin Act and New York Executive Law. A 49-page filing from the Office of the Attorney General of New York (OAG) outlines the investigation and the Office’s conclusions, alleging that “Galaxy’s conduct, including its misrepresentations and omissions about LUN...
Jan 11, 2025
Law and Order
Do Kwon's Terra Trial Set for 2026—Here's What You Need to Know
The high-stakes trial of Terraform Labs co-founder Do Kwon is scheduled for January 26, 2026, in the U.S. District Court for the Southern District of New York. He'll spend the next year in federal jail, after his lawyers consented to his detention. The trial, expected to last four to eight weeks, will address criminal fraud charges tied to the catastrophic $40 billion collapse of the TerraUSD (UST) stablecoin and its sister token LUNA in 2022. This case is a culmination of international legal ba...
Jan 7, 2025
Law and Order
Terra Collapse May Have Impacted a Million Victims, Feds Allege in Do Kwon Case
The Terra ecosystem collapse in 2022 didn't make as many headlines as FTX, but the total number of victims could exceed 1 million, according to new court documents. The documents filed this week allege that the number of victims of disgraced crypto mogul, Terraform Labs founder Do Kwon, is “difficult to precisely quantify.” Kwon last week pleaded not guilty in a New York court to U.S. criminal charges including fraud over the collapse of the Terra crypto ecosystem. His crypto project went up in...
Jan 2, 2025
Law and Order
Do Kwon Pleads Not Guilty to US Charges Over Terra LUNA, UST Crash
Alleged crypto crook Do Kwon pleaded pleaded not guilty in a New York court Thursday to U.S. criminal charges over the 2022 collapse of the Terra crypto ecosystem, following his extradition earlier this week from Montenegro. Feds hit the 33-year-old disgraced tech entrepreneur with nine criminal counts, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. He agreed Thursday to be held without bail before U.S. Magistrate Judge Robert Lehrburger, In...
Dec 11, 2024
Markets
Disgraced Terra Founder Do Kwon Inspires Korean Indie Film ‘Crypto Man’
The $45 billion Terra crash of 2022, involving TerraUSD and LUNA, is set to be immortalized in a new South Korean independent movie. In “Crypto Man,” the late actor Song Jae-rim plays the protagonist and self-proclaimed business genius who develops an altcoin dubbed MOMMY. Jae-rim, a well-known actor in South Korea, was found dead in his hotel room in November 2024, in what police think was likely a suicide. According to the Korean newspaper JoongAng Daily, the new movie is loosely inspired by t...
Sep 20, 2024
Law and Order
Terraform Labs Could Pay Up to $442 Million as Bankruptcy Judge Approves Wind Down
Defunct stablecoin firm Terraform Labs has had its application for Chapter 11 bankruptcy approved by a Delaware court. Judge Brendan Shannon called the move a “welcome alternative” that avoids complex further litigation over the losses by Terraform’s investors, according to reporting by Reuters. The company was mainly known for its TerraUSD (UST) stablecoin and accompanying Luna (LUNA) token. Both assets collapsed in May 2022, wiping out $45 billion in market value overnight and causing bankrupt...
Sep 3, 2024
Law and Order
Terra-Linked Galois Capital Lost $40 Million on FTX—Now It Must Pay the SEC a Fine Too
Galois Capital, the crypto hedge fund that famously warned of the dangers around Terra's LUNA and UST ahead of their 2022 collapse, has been charged by the U.S. Securities and Exchange Commission for misleading investors and for not properly safeguarding customer funds. The firm, which shut down in early 2023 after being impacted by the downfall of crypto exchange FTX, has settled the charges and will pay the regulator a civil penalty of $225,000, which will be distributed to users. Galois lost...
Aug 13, 2024
Coins
Three Arrows Capital Liquidators File $1.3 Billion Claim Against Terraform Labs
Liquidators of Three Arrows Capital (3AC) are seeking $1.3 billion from TerraForm Labs Pte., the digital assets company co-founded by Do Kwon. The claim relates to losses 3AC experienced following the 2022 crash of the company's TerraUSD (UST) and Luna (LUNA) tokens. According to a document filed in the U.S Bankruptcy Court for the District of Delaware on Aug, 9, the liquidators allege TerraForm Labs "engaged in a scheme to manipulate the open market for LUNA and UST in a manner that artificiall...
Aug 2, 2024
Markets
Terra Founder Do Kwon Will Be Extradited to South Korea—Court Says It's Final
The Montenegro Appellate Court upheld its decision to extradite Do Kwon, the founder of Terraform Labs, to South Korea. The August 1 ruling marks the conclusion of a protracted legal saga involving multiple appeals and judicial reversals. The Appellate Court confirmed the June 28 decision of the Higher Court in Podgorica, which granted the extradition request from South Korea while rejecting a concurrent request from the United States. The court’s ruling is based on the provisions of Montenegro'...
Jul 31, 2024
Law and Order
Bahamas Passes Crypto Law Designed to Prevent FTX, Terra Disasters
The Bahamas has passed a new crypto law which aims to adapt to how the industry has changed since 2020, following the collapse of Sam Bankman-Fried’s FTX and the failure of Do Kwon’s Terraform Labs. The Digital Assets and Registered Exchanges Act 2024 (known as DARE 2024) most notably introduces new rules for businesses providing custody of digital assets. These regulations appear to address mistakes made with FTX, which was headquartered in the island country. This includes requirements to main...
Jul 31, 2024
DeFi
Terra Blockchain Exploit Drains Over $4 Million in Tokens
The Terra blockchain was halted Wednesday morning after an exploit drained millions of dollars worth of tokens. In a tweet, Terra stated that the blockchain would halt at block height 11430400 to enable validators to apply an "emergency patch" to address the exploit. 📣Attention Terra users: Please be advised that the chain will be halted shortly at block height 11430400 and transactions will not be processed during this time. We will be working with the validators on Terra (phoenix-1) to apply...
Jul 19, 2024
Law and Order
South Korea Enacts First Crypto Investor Protection Law, Bolstering Existing Rules
The South Korean Financial Services Commission's inaugural law to protect crypto investors came into force on Thursday, as the country attempts to close its regulatory shortcomings related to the industry. The Virtual Asset User Protection Act aims to target unfair trading practices following incidents of bygone years including the likes of the Terra-Luna crash and FTX's collapse. The law's implementation follows recent initiatives by South Korean crypto exchanges to prevent mass delistings ahea...
May 31, 2024
Markets
Terra Coins LUNA and LUNC Rise After Do Kwon SEC Settlement
Cryptocurrencies linked to the Terra ecosystem have seen gains overnight, following the news that Terraform Labs and its founder Do Kwon have reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC). Terra's rebooted LUNA cryptocurrency is up 16.3% in the past 24 hours to trade at $0.69, while Terra Luna Classic (LUNC), the native token of the original Terra ecosystem, is up by 9.5% in the past day, trading at $0.0001215. Per court minutes for the case, the parties i...
May 30, 2024
Law and Order
Do Kwon and Terraform Labs Settle With SEC Over LUNA, TerraUSD Fraud Charges
Terraform Labs, the Do Kwon-led startup behind the collapsed LUNA cryptocurrency and TerraUSD (UST) stablecoin, has agreed in principle to a settlement with the United States Securities and Exchange Commission (SEC) over fraud charges. News of the tentative settlement was first reported by Reuters. The court listing for the case notes that all parties informed the court of an agreement in principle, with filings in the matter due by June 12. Kwon and Terraform Labs were found guilty by a jury of...
Apr 24, 2024
Law and Order
Terra Founder Do Kwon Files Extradition Appeal, Calls Out 'Bizarre' Legal Readings From Court
The legal brawl in Montenegro over Terraform Labs co-founder Do Kwon isn’t over just yet. Lawyers filed an appeal Tuesday on behalf of Kwon, pushing back against a decision from the High Court of Podgorica. The decision found that conditions had been met earlier this month for Kwon’s extradition—to either the U.S. or South Korea—on charges related to Terra’s collapse. In the appeal, Kwon’s lawyers asserted that laws on legal assistance from other countries in Montenegro had been “interpreted in...
Mar 8, 2024
Law and Order
US to Challenge Extradition of Terra Founder Do Kwon to South Korea
U.S. prosecutors plan to challenge a decision by Montenegro's High Court to extradite Terra founder Do Kwon to his native South Korea. "The United States continues to seek Kwon’s extradition in accordance with relevant international and bilateral agreements and Montenegrin law," the Justice Department said in a statement to news outlet Bloomberg. Earlier this week, the High Court of Montenegro ruled that Do Kwon could be extradited to South Korea upon completion of his jail sentence at Spuž pris...
