U.S. investigation into Do Kwon and his infamous stablecoin unveils several new revelations

Quick Take

  • The SEC charge sheet contained new allegations about how Terraform Labs and its associated tokens were run.
  • There was a secret bailout of stablecoin TerraUSD in mid-2021, which re-pegged the token to the U.S. dollar, and gave investors confidence to pour billions of dollars more into the product, according to the SEC.
  • Founder Do Kwon has a secret stash of 10,000 bitcoin and has sold more than $100 million of them since TerraUSD collapsed. 

The collapse of supposed stablecoin TerraUSD last May wiped out more than $40 billion of market value held by investors who bought into the story that creator Do