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anchored·5M9VRc…MoaKSummary
Terra 2.0 (LUNA) is a replacement blockchain launched in May 2022 by Terraform Labs following the catastrophic collapse of the original Terra network and its algorithmic stablecoin TerraUSD (UST), which erased approximately $40–60 billion in market value in one week. The project's founder, Do Kwon, was arrested in March 2023, found liable for securities fraud in a U.S. civil trial in April 2024, pleaded guilty to wire fraud and conspiracy in August 2025, and was sentenced to 15 years in federal prison in December 2025. Terraform Labs itself filed for Chapter 11 bankruptcy in January 2024 and received court approval to wind down operations by September 2024, leaving Terra 2.0 as a severely diminished chain with minimal developer activity and an approximately 79% year-over-year decline in token value.
Connected Entities
1 entities- + 10 more
Timeline(19 events)
2018
Terraform Labs founded by Do Hyeong Kwon and Daniel Shin in Singapore.
7 May 2022
TerraUSD (UST) begins to depeg from $1.00 following a large sell-off in the Curve Finance liquidity pool.
9 May 2022
UST loses its dollar peg decisively. Luna Foundation Guard begins deploying Bitcoin reserves to defend the peg.
12 May 2022
LUNA supply hyperinflates from ~343 million to over 6.5 trillion tokens. Both UST and LUNA collapse to near zero. Terra blockchain is halted.
16 May 2022
Terra blockchain resumes but UST and LUNA remain effectively worthless. Estimated $40-60 billion in market value destroyed.
25 May 2022
Terra community approves Governance Proposal 1623, authorizing a new chain — Terra 2.0 — without an algorithmic stablecoin.
28 May 2022
Terra 2.0 blockchain launches. New LUNA tokens airdropped to pre-collapse and post-collapse holders. Original chain renamed Terra Classic (LUNC).
15 June 2022
Three Arrows Capital fails to meet margin calls, triggering a cascading series of crypto firm bankruptcies attributed in part to Terra contagion.
September 2022
Interpol issues Red Notice for Do Kwon after South Korean authorities issue an arrest warrant and revoke his passport.
16 February 2023
SEC files civil fraud complaint against Terraform Labs and Do Kwon in the Southern District of New York.
23 March 2023
Do Kwon arrested at Podgorica Airport, Montenegro, while attempting to board a flight to Dubai with falsified Costa Rican documents.
21 January 2024
Terraform Labs files for Chapter 11 bankruptcy in Delaware, listing assets and liabilities each in the $100M-$500M range.
5 April 2024
Jury unanimously finds Terraform Labs and Do Kwon liable for securities fraud in the SEC's civil trial in SDNY, after less than two hours of deliberation.
12 June 2024
Court orders Terraform Labs and Do Kwon to pay more than $4.5 billion — $3.59B in disgorgement, $467M in prejudgment interest, and $420M in civil penalties.
19 September 2024
U.S. Bankruptcy Court approves Terraform Labs' Chapter 11 wind-down plan, establishing a Wind Down Trust and Crypto Loss Claims process.
27 December 2024
Montenegro's Minister of Justice signs extradition order sending Do Kwon to the United States.
31 December 2024
Do Kwon arrives in U.S. custody and makes initial appearance in Manhattan federal court.
12 August 2025
Do Kwon pleads guilty in Manhattan federal court to conspiracy to commit fraud and wire fraud in connection with the $40 billion Terra collapse.
12 December 2025
U.S. District Judge Paul Engelmayer sentences Do Kwon to 15 years in federal prison, three years above the prosecutors' recommended sentence.
Decision Log
- hash: ArFnFrwNFqzKBoqXAY3pDmUz75qLaJ2oFcrcQ4WqoTtm
- hash: HATZTpE35ASkFYgLARyqGgbeQ8vghBCH8xoXkf2Lk2m
- hash: 5WNEScwGSLAphLqPhy76hVpcfsUTbumiEKce5UjKQZoD
This investigation is cryptographically anchored to the Solana blockchain (3 events). 23 of 29 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:30 AM
last updated: 8/30/2026, 5:14:06 AM
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