In 2022, the prices of TerraUSD (an algorithmic stablecoin) and Luna coin, developed by South Korean cryptocurrency entrepreneur Do Kwon, plummeted, leading to the evaporation of approximately $40 billion in market value. Do Kwon, 34, co-founder of Singapore-based Terraform Labs, is set to be sentenced on December 11, 2025, in a New York federal court for fraud and conspiracy charges. He had previously pleaded guilty, admitting to making misleading statements to investors about tokens that were supposed to maintain price stability during periods of cryptocurrency market volatility. In May 2021, after TerraUSD's price fell below $1, Do Kwon publicly claimed that an algorithm had restored the token's value, when in fact, he had arranged for a trading firm to purchase millions of dollars' worth of tokens to prop up the price. Prosecutors have requested a sentence of at least 12 years in prison, while the defense attorney has requested a sentence of no more than 5 years.