The cryptocurrency crash that shocked the cryptocurrency community in May quickly brought Terra founder Do Kwon to the forefront of public opinion. Then in 2021, Luna, the sister token linked to UST on the Terra blockchain, saw a 15,800% increase, and speculators were able to tak

The cryptocurrency crash that shocked the cryptocurrency community in May quickly brought Terra founder Do Kwon to the forefront of public opinion. After $60 billion in crypto assets went up in smoke, many speculated that he was likely to face jail time. However, a former U.S. federal prosecutor and former senior attorney at the U.S. Securities and Exchange Commission said in an interview with CNBC: Criminal charges against Do Kwon are difficult to prove because prosecutors must provide evidence of clear fraudulent intent. .

Even so, the 30-year-old Korean founder of the Terra algorithmic stable currency is still very likely to be punished by regulatory agencies. At the same time, investors who have lost their money can no longer help but launch a civil compensation lawsuit against him.

On the other hand, the Terra community has voted to enable the hard fork of the new blockchain on May 27 and rename the old chain to Terra Classic. Such a "regret medicine" obviously "pays tribute" to the rollback operation of the Ethereum community in 2016.

Before the collapse of TerraUSD (UST), Do Kwon successfully convinced investors to hold this so-called "algorithmic stablecoin" and worked hard to establish himself as "the next Satoshi Nakamoto ".

Then in 2021, Luna, the sister token linked to UST on the Terra blockchain, ushered in a 15,800% increase, and speculators were able to take advantage of the fluctuations in the currency values ​​of the two tokens to arbitrage.

In fact, May of this year was the second time Do Kwon faced the “darkest moment” after launching the UST algorithm stable currency. It was just that the first attempt resulted in a loss of tens of millions of dollars, but the second attempt soared to tens of billions of dollars.

It is reported that although a spokesperson for Terraform Labs declined to comment on the civil or criminal liability that the company and executives may face, senior judicial and regulatory figures have given several predictions - ranging from fines to jail time.

However, limited by jurisdiction and lack of evidence, Randall Eliason explained that economic cases cannot allow suspects to prove their innocence like homicide cases. After all, in the United States, the judiciary cannot convict a businessman based solely on his poor decision-making.