Court documents allege that the Terra ecosystem, founded by Do Kwon, may have affected over a million victims when its UST stablecoin and LUNA token collapsed in 2022. The new filings claim the number of victims is challenging to determine, with estimates suggesting it exceeds hundreds of thousands, potentially reaching over one million. Kwon is facing U.S. criminal charges, including fraud, amid accusations that he misled investors and orchestrated a scheme to enhance his wealth, leading to the loss of $40 billion in market value. The collapse of the Terra ecosystem occurred shortly before the infamous FTX bankruptcy, underscoring a wave of crises in the crypto sector. Authorities assert that Kwon manipulated core Terraform products to create a façade of a viable decentralized financial system to attract investors. The investigation continues as victims seek justice and accountability from Kwon and his associates.

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