More than a million people suffered from the collapse of a scandalous cryptocurrency platform

Acting U.S. Attorney Daniel Gitner estimates that more than a million people have been affected by the collapse of the Terraform Labs ecosystem. This became known from an official statement filed with the court on January 6, 2025.

Both individuals and legal entities in the United States and abroad that invested in Terraform cryptocurrency suffered losses. Due to the scale of the transactions and their complex schemes, the exact number of victims is difficult to determine, but the government believes that there may be more than a million.

Terraform Labs co-founder Do Kwon stood trial on January 2, 2025, after being extradited to the United States. He pleaded not guilty to the charges. Law enforcement agencies in the United States and South Korea have been investigating the case since the company’s collapse in May 2022. The collapse of Terraform Labs and its TerraUSD and Luna products caused more than $ 40 billion in losses.

The US government has promised to inform victims through its official website about all court proceedings related to this case.

As a reminder, in April 2024, a jury in the Southern District of New York found Terraform and its founder Do Kwonguilty of investor fraud and securities fraud. According to SEC estimates, the losses from the collapse of the TerraUSD algorithmic stablecoin in 2022 amounted to more than $ 40 billion.