Do Kwon, the South Korean crypto entrepreneur and co-founder of Terraform Labs, has seen a dramatic shift in his fortunes. Once a star in the crypto world, he’s now the subject of international arrest warrants and lawsuits following the catastrophic crash of his two main crypto projects, TerraUSD and Luna. As of 2023, Do Kwon has an estimated net worth of $135 – $150 million.
Background
Born on September 6, 1991, in Seoul, South Korea, Do Kwon (real name Kwon Do-Hyung) studied Computer Science at Stanford University. His early career saw him work as a software engineer for tech giants like Microsoft and Apple, but his entrepreneurial spirit drew him back to South Korea.
Crypto Career
Kwon co-founded Terraform Labs in 2018 with business executive Daniel Shin. Terraform Labs aimed to revolutionize the crypto space with a decentralized stablecoin, TerraUSD (UST). Luna, another creation of Terraform Labs, served as a native currency on the Terra blockchain. In addition to these innovations, Terraform Labs oversaw the development of CHAI, an e-commerce platform that utilized UST.
UST and Luna’s Collapse
UST and Luna initially saw significant success, bringing in lucrative returns for early investors. However, in May 2022, their value plummeted almost overnight. UST depegged from its $1 target value, and Luna followed suit, dropping 99.99% due to its direct link to UST. This sudden crash had a ripple effect on Bitcoin and the wider crypto market, causing major financial losses for many investors.
Net Worth and Earnings
Prior to the Terra crash, Do Kwon’s net worth was estimated to be around $4 billion, with most of his wealth coming from his successful crypto projects, Terra and Luna. Following the collapse, his net worth is estimated to be between $135 – $150 million, largely due to Bitcoin holdings in the Luna Foundation Guard wallet.
Legal Challenges
Kwon now faces multiple lawsuits, including charges from the U.S. Securities and Exchange Commission (SEC). The SEC has accused Kwon and Terraform Labs of orchestrating a multi-billion dollar crypto asset securities fraud involving TerraUSD and Luna, among other crypto asset securities. They allege that Kwon misled investors with false and deceptive marketing, ultimately leading to massive financial losses.
Present Situation
Kwon was arrested in Montenegro in March 2023, after being on the run for several months. He was wanted in multiple countries, including the United States and South Korea, on charges of fraud and violations of South Korea’s capital markets law. It’s believed that he was hiding in Serbia prior to his arrest.
Personal Life
Despite his public profile, Kwon is a private individual. He is married and has a daughter, who was born in April 2022 and was named Luna after his “greatest invention”. His wife reportedly sought police protection in May 2022 following an incident at their home, which occurred in the wake of the Terra and Luna crash.
