US prosecutors believe that about 1 million people were affected by the collapse of the Terra cryptocurrency project.
Following the bankruptcy of Terraform Labs in May 2022, the company's cryptocurrencies Terra (LUNA) and TerraUSD (UST), later renamed Terra Classic (LUNC) and TerraClassicUSD (USTC), respectively, were almost completely devalued, falling in price by more than 99% in a few days. According to law enforcement, the victims of the collapse of the Terra ecosystem were residents of countries around the world, numbering approximately 1 million.
It is difficult to accurately estimate the number of victims of Kwon's actions, but given the number of purchases and sales of Terraform-created cryptocurrencies and the nature of those transactions (many of which took place on foreign exchanges using crypto wallets or unidentified crypto trading accounts), the government believes the number of victims in this case is in the hundreds of thousands and likely exceeds 1 million, сообщили law enforcement officers.
Prosecutors made the announcement on Jan. 6 during the trial of Terraform Labs founder Do Kwon, who is accused of fraud. In addition, a civil trial against Kwon and Terraform Labs concluded in April 2024, resulting in a nearly $4,5 billion judgment.
Do Kwon
According to the Fairness for All Act, the US government is required to notify victims of the legal process, give them a chance to speak in court and receive compensation. Based on this, it can be assumed that not only Americans, but also residents of other countries who suffered losses due to the scam committed by Kwon, will be able to count on the return of at least part of the lost funds.
