The biz rose to prominence outside cryptocurrency circles in 2022 when the value of TerraUSD dropped from $1 to just nine cents – a disaster given the digital currency was promoted as a “stablecoin” that would maintain its value, in this case by matching the US dollar.
But its protocol – which aimed to ensure TerraUSD’s price would remain stable – failed miserably in part thanks to its underlying blockchain being unable to scale as scared investors sent demand for transactions soaring.
Within days of investor panic beginning, over $42 billion in value was effectively erased as stabilization measures such as buying Bitcoin failed to stop the bleeding.
While Kwon struggled in Montenegro, US authorities brought a securities fraud case against Terraform Labs, and in April a jury quickly found the company’s principals guilty.
“Do Kwon and Terra orchestrated one of the largest securities frauds in US history by, among other things, falsely claiming that they had achieved the Holy Grail of crypto: a non-illicit use case,” thundered Gurbir S Grewal, director of the SEC’s Division of Enforcement
“All they succeeded in doing was lying to investors, wiping out tens of billions of dollars in market value, and creating a trail of victims,” the director added.
The original article contains 503 words, the summary contains 206 words. Saved 59%. I’m a bot and I’m open source!
This is the best summary I could come up with:
The biz rose to prominence outside cryptocurrency circles in 2022 when the value of TerraUSD dropped from $1 to just nine cents – a disaster given the digital currency was promoted as a “stablecoin” that would maintain its value, in this case by matching the US dollar.
But its protocol – which aimed to ensure TerraUSD’s price would remain stable – failed miserably in part thanks to its underlying blockchain being unable to scale as scared investors sent demand for transactions soaring.
Within days of investor panic beginning, over $42 billion in value was effectively erased as stabilization measures such as buying Bitcoin failed to stop the bleeding.
While Kwon struggled in Montenegro, US authorities brought a securities fraud case against Terraform Labs, and in April a jury quickly found the company’s principals guilty.
“Do Kwon and Terra orchestrated one of the largest securities frauds in US history by, among other things, falsely claiming that they had achieved the Holy Grail of crypto: a non-illicit use case,” thundered Gurbir S Grewal, director of the SEC’s Division of Enforcement
“All they succeeded in doing was lying to investors, wiping out tens of billions of dollars in market value, and creating a trail of victims,” the director added.
The original article contains 503 words, the summary contains 206 words. Saved 59%. I’m a bot and I’m open source!