Do Kwon Admits to Misleading Terra/Luna Investors
Kwon's once-promising cryptocurrency project, Terra, alongside its native token Luna, was heralded as a revolutionary model in the digital finance space, promoting a stablecoin system backed by a complex algorithm. However, as Terra's market value spiralled downward in May 2022, the system's instability became glaringly apparent, triggering a collapse that sent shockwaves through the entire crypto industry.
At the heart of the scandal is the assertion that Kwon misled investors by downplaying the risks of the Terra/Luna ecosystem. During several public appearances and through communications with investors, Kwon had portrayed the Terra network as safe and resilient. His claims were underpinned by his ability to maintain a high market value for Luna and the purported stability of TerraUSD, a stablecoin tied to the project. The failure of the system, when TerraUSD's peg to the US dollar faltered, led to an unprecedented crash in Luna's value, rendering it almost worthless.
ADVERTISEMENT
The legal proceedings against Kwon were initiated shortly after the collapse, with allegations of fraud, market manipulation, and a blatant disregard for investor protection laws. Following his arrest in Montenegro earlier this year, Kwon's legal troubles intensified, with prosecutors alleging that his actions were tantamount to a Ponzi scheme, designed to artificially inflate the market for Luna and its associated assets.
Kwon's defence team initially argued that he did not intentionally deceive investors and that the Terra/Luna collapse was the result of market conditions beyond his control. However, his guilty plea signals a change in approach. Experts suggest that Kwon may have opted for a guilty plea in order to avoid prolonged legal battles, especially as the mounting evidence pointed towards significant flaws in the way he operated the project.
The plea has drawn significant attention, not just from the cryptocurrency community, but also from regulators worldwide who have been closely monitoring the growing number of legal cases involving crypto fraud and market manipulation. The Terra/Luna crash is widely seen as one of the most significant incidents in the volatile history of cryptocurrency, highlighting the risks associated with algorithmic stablecoins and the lack of regulation in the sector.
Kwon's case has also reignited discussions about the need for comprehensive regulation in the cryptocurrency space. Many in the industry believe that the failure of Terra/Luna could have been prevented or mitigated had there been clearer regulatory oversight governing the behaviour of blockchain-based projects. In the aftermath of the collapse, several global regulators have moved to draft stricter guidelines aimed at improving transparency and accountability for digital assets, particularly those promising stability through mechanisms like algorithmic stablecoins.
The consequences of Kwon's actions extend beyond financial losses. The collapse of Terra/Luna resulted in a loss of trust in the cryptocurrency market, with many investors becoming wary of similar projects that promise high returns with little risk. While the crypto sector has made efforts to rebuild its reputation, the Terra/Luna scandal remains a cautionary tale for anyone entering the volatile world of digital finance.
For investors, the aftermath of the collapse has been bitter. Many are still seeking compensation, and several class action lawsuits have been filed against Kwon and his associates. However, the road to recovery for those affected may be long, as legal proceedings unfold and the extent of Kwon's liability is determined.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
8 hours ago
- Al Etihad
‘Masdar' achieves record portfolio growth of 62% in 2024
20 Aug 2025 12:59 ABU DHABI (ALETIHAD)Abu Dhabi Future Energy Company PJSC – Masdar has released its 12th Annual Sustainability Report, which highlights how the company strengthened its position as a global clean energy leader last year, delivering record portfolio capacity growth and increasing its global footprint through major acquisitions in Europe and the United Sustainability Report highlights the company's continued progress in key sustainability areas, including environmental performance, social impact, ethical business practices, and workforce diversity. It also reinforces Masdar's leadership in sustainable finance with the expansion of its green bond programme in achieved a record portfolio growth of 62 per cent last year, with its operational, under-construction, and advanced pipeline capacity reaching 51 gigawatts (GW), more than halfway to the company's 2030 target of capacity for operational and under construction projects almost doubled to 32.6GW, with operational projects generating 29,225 gigawatt-hours (GWh) of clean electricity, avoiding 15.5 million tonnes of carbon dioxide acquisitions fueled Masdar's growth in 2024. With its strategic expansion in Europe, Masdar acquired Greece's TERNA ENERGY for a total enterprise value of €3.2 also acquired a 50 per cent stake in Terra-Gen, one of the largest independent renewable energy producers in the United States. Terra-Gen's portfolio will play a key role in driving Masdar's global capacity growth. The investment will also accelerate collaboration between the US and the UAE in alignment with their strategic energy partnership for reliable, affordable and sustainable the Iberian Peninsula, another core European market, Masdar expanded further by acquiring Saeta for $1.4 billion and securing a 49 per cent stake in a 2GW operating solar portfolio from Endesa on the report's findings, Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, 'As Masdar continues to evolve as a global clean energy leader, 2024 marked a defining chapter in our journey, as we expanded our presence in key global markets, strengthened our financial credentials, and drove initiatives that reflect our commitment to responsible growth and inclusive a global investor, developer, and operator, we are delivering impact at scale across key geographies and helping to shape the future of clean energy. We will continue to drive innovation in the clean energy sector and reinforce our position as a partner of choice for governments and communities across the globe.' Aligned with its focus on diversity, inclusion, and leadership development, Masdar is committed to promoting a strong female representation in management, with women now comprising 20 per cent of its management team. It is also steadfast in its approach to empowering local communities through sustainable urban development and inclusive energy access initiatives across its projects. Source: Aletihad - Abu Dhabi
Al Etihad
2 days ago
- Al Etihad
Rabdan Academy students explore South Korea's AI-driven safety systems, crisis strategies in 12-day mission
19 Aug 2025 02:02 SARA ALZAABI (ABU DHABI)Providing its students with valuable exposure to global institutions and cultures, Rabdan Academy recently completed a 12-day mission to South the academy — one of Abu Dhabi's leading institutes for safety, security, defence, emergency preparedness and crisis management — the outreach serves as a significant opportunity to boost global relations and learn more about best practices in the Salem Al Saedi, Registrar and Acting Director of Student Affairs at Rabdan Academy, described such international missions as 'powerful accelerators' that hones students' practice skills and broadens their perspectives.'While classroom learning offers a strong theoretical base, these missions immerse students in live environments where they see how advanced nations address the very challenges we study,' Al Saedi told Aletihad in an engaging with top Korean institutions, Al Saedi said, the team explored 'new developments in safety, security, defence, and resilience — areas that are at the very heart of our mission'. Students who join such trips gain a global outlook, enrich their cultural knowledge, and learn the value of adaptability, she Maryam Ahmed Salem Hasan Alhammadi, a student taking up bachelor of science in Integrated Emergency Management, the visit to the South Korean Ministry of Interior's Disaster and Safety Management Bureau and the National Cybersecurity Center was an eye-opener.'We saw how advanced technology, real-time data integration, and strong inter-agency coordination can dramatically enhance national safety and resilience. Their AI-powered systems and centralised crisis dashboards enable rapid, well-informed responses to emergencies,' Alhammadi trip, she added, strengthened her skills in risk assessment and situational analysis, and deepened her commitment to "understanding how theoretical concepts translate into integrated systems that connect cyber, physical, and human elements to protect national security'.Another student, Mohammed Ahmed Ali Binrabeea Alnaqbi, was impressed by how South Korea incorporates community engagement into its contingency planning — such as through an app that helps the public report hazards and locate nearby shelters.'It reinforced the value of community participation in national safety when awareness is high,' Alnaqbi said.A visit to the Korean War Museum also offered valuable historical and tactical lessons, he added. "Having the historical context paired with visuals and expert explanations strengthened my analytical skills and provided a richer perspective on modern defence planning.''These firsthand experiences are far more powerful than anything you can learn from a book,' Alnaqbi encouraged future students to seize every opportunity to join international learning missions.'Such trips open your mind, broaden your skills, and show you how shared knowledge can create real impact back home,' she Saedi said the recent educational mission to South Korea showed how Rabdan Academy translates 'its strategic vision into meaningful action'.The academy's long-term strategy 'focuses on building enduring global partnerships, consistently benchmarking ourselves against the world's most advanced academic and training institutions, and integrating the latest innovations and best practices into our educational model', she said. The impact of such visits reaches far beyond the participants, Al Saedi said. 'We view such engagements not as isolated events, but as strategic investments that shape the future of our students, our institution, and the sectors we serve.'The visit also opened the door to future collaborations with institutions such as Seoul National University, Korea University, and the Ministry of Interior and to Al Saedi, discussions are underway on joint research, student and faculty exchanges, and specialised training, with some already moving toward formal agreements. 'Our long-term vision is to expand these global academic missions, building a network of international partnerships that enrich our students' education, elevate our institutional capabilities, and contribute to the UAE's leadership in safety, security, and resilience on a global stage,' she said.
Arabian Post
3 days ago
- Arabian Post
Samsung Shifts Laptop Production to India
Samsung has commenced local production of laptops in India, marking a significant shift in its manufacturing strategy. The move follows growing trends in the global tech industry, where companies are increasingly decentralising their manufacturing to cater to regional markets and mitigate supply chain risks. The tech giant's decision to set up its laptop assembly line in India comes as part of a broader push to diversify its production capabilities and tap into the country's emerging manufacturing ecosystem. The new facility, which is located in Noida, is expected to meet rising demand for Samsung laptops in India and other parts of Asia. The plant will focus on assembling a range of models, from entry-level to premium devices, with an emphasis on enhancing the supply of high-performance laptops. By doing so, Samsung aims to capitalise on the Indian government's incentive schemes aimed at boosting local manufacturing and creating jobs in the sector. India has become an increasingly attractive destination for global manufacturers due to its robust infrastructure, competitive labour costs, and a growing pool of skilled engineers and technicians. Samsung's decision to invest in local laptop production highlights the country's status as a strategic hub for tech companies looking to scale operations. The move also aligns with the Indian government's vision of becoming a global manufacturing leader under the 'Make in India' initiative, which encourages foreign companies to establish production bases in the country. ADVERTISEMENT The South Korean company has been investing heavily in India over the past few years, with a significant focus on expanding its footprint in consumer electronics, particularly smartphones. The expansion of laptop production further strengthens its position in the Indian market, where the demand for personal computing devices has been steadily increasing. India, with its young population and rapid digitalisation, presents a lucrative market for tech companies. By establishing local manufacturing units, Samsung can not only meet this demand more effectively but also potentially lower the cost of its devices by reducing import duties and other logistical expenses. Samsung's Noida plant will be equipped with advanced manufacturing technology, allowing the company to ensure that its laptops meet international quality standards. The facility is expected to produce several million units annually, with an eye on both the domestic and export markets. This localisation strategy is expected to significantly cut down on shipping costs and delivery times, giving Samsung a competitive edge over other international brands that continue to import their devices into the country. The move comes at a time when India is becoming increasingly attractive to global technology firms. Companies like Apple, Dell, and HP have already ramped up their manufacturing presence in India in recent years. India's well-established electronics sector, supported by the government's push to improve infrastructure and streamline regulatory processes, has led to a surge in foreign direct investment in the country's tech manufacturing ecosystem. Samsung's expansion into laptop production also reflects the growing importance of India in the global supply chain. The country's status as a low-cost production base, combined with its large consumer market, makes it an attractive location for companies looking to avoid the risks associated with heavy dependence on single countries, such as China. By shifting some of its manufacturing operations to India, Samsung can reduce its exposure to potential disruptions in China, which has long been the dominant player in global electronics manufacturing. This shift is also likely to have broader implications for the Indian tech industry. With global giants like Samsung setting up local production lines, it is expected that the country will see an increase in the number of skilled jobs in the tech sector. Additionally, the growing demand for locally manufactured devices may spur innovation in the country's tech ecosystem, encouraging the development of homegrown talent and technologies. This would not only strengthen India's position as a manufacturing hub but also lay the foundation for the growth of its own tech startups.
