According to the US government’s prosecution team, Do Kwon, co-founder of Terraform Labs, may have potentially defrauded up to one million victims around the world through the collapse of the Terra ecosystem.
This statement was made in a New York City court on January 6, 2025, where Kwon is facing nine felony charges related to fraud at Terraform Labs.
To reach these victims, the government plans to set up a public website for updates on Kwon’s case, rather than using traditional methods which would be impractical due to the widespread nature of the fraud.
According to acting US attorney Daniel Gitner, it is difficult to determine an exact number of victims given the complex nature of the transactions and lack of personal information, but the estimated number exceeds hundreds of thousands and could potentially be over one million.
