--- title: This is how a $40 billion crypto cult came crashing down... description: Terra Luna, a $40 billion cryptocurrency project built around a stablecoin, collapsed completely within one week. The founder, Do Kwon, went on the run for... canonical: https://daily.dev/posts/this-is-how-a-40-billion-crypto-cult-came-crashing-down-crypto-terraluna-stablecoin-dokwon-0aqmevrz6 twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: This is how a $40 billion crypto cult came crashing down #crypto #terraluna #stablecoin #dokwon | daily.dev og:description: Terra Luna, a $40 billion cryptocurrency project built around a stablecoin, collapsed completely within one week. The founder, Do Kwon, went on the run for... og:url: https://daily.dev/posts/this-is-how-a-40-billion-crypto-cult-came-crashing-down-crypto-terraluna-stablecoin-dokwon-0aqmevrz6 og:image: https://api.daily.dev/og/posts/0AqMevRZ6.png og:image:alt: This is how a $40 billion crypto cult came crashing down #crypto #terraluna #stablecoin #dokwon og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # This is how a $40 billion crypto cult came crashing down #crypto #terraluna #stablecoin #dokwon **[Hiten Shah](https://daily.dev/sources/hitenshow)** · 1 min read · 5 upvotes · 1 comments ## Summary Terra Luna, a $40 billion cryptocurrency project built around a stablecoin, collapsed completely within one week. The founder, Do Kwon, went on the run for nearly a year before being captured by Interpol in Montenegro. After initially pleading not guilty in January 2025, he later pleaded guilty to two fraud charges in August, admitting the project failed despite attempts to create what he called "the best currency in the world." ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Community discussion Top comments from developers on daily.dev. **@manjeet0796** · 0 upvotes > Why no one does background check before such investment and project... ? ## Similar posts on daily.dev - [Crypto-crasher Do Kwon jailed for 15 years](https://daily.dev/posts/crypto-crasher-do-kwon-jailed-for-15-years-fkgquohmh) · The Register · 1 upvotes · 0 comments - [Drift $280M crypto theft linked to 6-month in-person operation](https://daily.dev/posts/drift-280m-crypto-theft-linked-to-6-month-in-person-operation-slawqlqix) · BleepingComputer · 0 upvotes · 0 comments - [The Auditors Signed Off. The Money Left Anyway.](https://daily.dev/posts/the-auditors-signed-off-the-money-left-anyway--p8brhmwb5) · Coins Bench · 0 upvotes · 0 comments --- Tags: [#blockchain](https://daily.dev/tags/blockchain), [#crypto](https://daily.dev/tags/crypto), [#fintech](https://daily.dev/tags/fintech), [#stablecoin](https://daily.dev/tags/stablecoin) [View this post on daily.dev](https://daily.dev/posts/this-is-how-a-40-billion-crypto-cult-came-crashing-down-crypto-terraluna-stablecoin-dokwon-0aqmevrz6) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"This is how a $40 billion crypto cult came crashing down #crypto #terraluna #stablecoin #dokwon","url":"https://daily.dev/posts/this-is-how-a-40-billion-crypto-cult-came-crashing-down-crypto-terraluna-stablecoin-dokwon-0aqmevrz6","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/this-is-how-a-40-billion-crypto-cult-came-crashing-down-crypto-terraluna-stablecoin-dokwon-0aqmevrz6"},"datePublished":"2026-01-19T13:25:29.670Z","dateModified":"2026-03-15T03:31:14.698Z","description":"Terra Luna, a $40 billion cryptocurrency project built around a stablecoin, collapsed completely within one week. 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