From $40 billion fraud to $4.5 billion settlement: Inside the latest crypto firm paying big bucks to end legal trouble

Posted under: Tech Move
Date: 2024-06-17
From $40 billion fraud to $4.5 billion settlement: Inside the latest crypto firm paying big bucks to end legal trouble

Do Kwon, the crypto billionaire and his company, Terraform Labs, was behind one of the most popular U.S.-pegged stablecoins on the planet, coins (dubbed terra and luna) were collectively worth tens of billions of dollars. Whereas most stablecoins are backed up by a mix of cash and other assets, Kwon’s invention was instead backed by a complex set of code. When the algorithm failed in May 2022, it cost investors $40 billion in market value overnight.

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