The collapse of the Terra ecosystem in 2022 didn't make as many headlines as FTX, but the total number of victims could exceed 1 million, according to new court documents.

Documents foot This week it is claimed that the number of victims of disgraced cryptocurrency mogul, Terraform Labs founder Do Kwon, is “difficult to accurately determine.”

Conn last week He pleaded not guilty In a New York court on US criminal charges including fraud It collapses Subordinate Terra Crypto ecosystem. His cryptocurrency project ended in 2022, resulting in a loss of $40 billion and many investors.

“Given the number of potential victims in this case, the government respectfully asserts that it is impractical to provide individual notice to each potential victim,” Monday’s court document said.

She added that the government believes that the number of victims “exceeds hundreds of thousands of individuals and entities, and may exceed one million.”

Kwon founded the Terra cryptocurrency ecosystem, which had the flagship LUNA token and the algorithmic stablecoin TerraUSD (UST) as its main products. Investors used it as a gateway into the world of decentralized finance, or DeFi, and LUNA quickly became one of the most valuable cryptocurrencies on the market.

But the UST stablecoin was unable to maintain its stable peg to the US dollar, and the entire ecosystem collapsed, wiping out its market value very quickly.

Authorities now allege that Kwon deceived investors in a fake venture to enrich himself. The feds in both the United States and Korea have brought criminal charges against him. In the United States, Kwon Ho He faces nine criminal chargesincluding securities, transfer and commodity fraud, as well as conspiracy to commit money laundering.

“Behind the scenes, Terraform’s core products did not perform as Kwon advertised, and were manipulated to create the illusion of an efficient, decentralized financial system in order to attract investors,” Monday’s document said.

Terra collapsed before FTX went bankrupt in 2022. FTX, once a massive cryptocurrency brand that allowed users to buy and sell cryptocurrencies and tokens, quickly went viral. He collapsed Due to criminal mismanagement.

After a highly publicized criminal trial, co-founder Sam Bankman Fried was put on trial Serve now He was sentenced to 25 years in prison for his role in the collapse of his cryptocurrency company. They have a lawyer appealAlleging an unfair trial.

Modified by Andrew Hayward