The crash of the Terra ecosystem sent shockwaves throughout the crypto industry. The blockchain’s native cryptocurrency, LUNA, collapsed by 98 percent, dropping from $79.8 per token on May 7, 2022, to a mere $0.9 on May 11, 2022.
The result? About USD 40 billion was wiped out in a matter of days, leaving investors and institutions reeling from the sudden plummet. As the dust begins to settle, all eyes turn to the founder and CEO of the Terra blockchain, Do Kwon.
There has already been a massive backlash against Kwon. He is believed to have hyped and promoted a project with shaky legs. He is also known for vehemently defending the project, lashing out at anyone who questioned its credentials. “I don’t debate the poor” is one of his most criticised responses on the internet.
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While comments like this are definitely not acceptable, they aren’t illegal – and this is exactly the point. We can argue that what Kwon did was reckless and his mismanagement led to thousands of investors losing their hard-earned money, but can we prove what he did was illegal? Most likely not, and this is why white-collar prosecutor, Randall Eliason believes that it is highly unlikely that Kwon will serve any jail time.
Eliason told Decrypt that a criminal case requires one to prove fraudulent activity, which is seldom possible. “When hedge funds and others lose a lot of money, it doesn’t mean there’s fraud. Prosecutors would need some evidence that it’s not a bad idea or…
