Recently, the once star figure in the Crypto Assets world, Kwon Do-hyung, pleaded guilty in a New York court, bringing a shocking eyewash to an end. The 33-year-old South Korean entrepreneur admitted to multiple serious charges, including telecom fraud, securities fraud, and commodity fraud.

Do Kwon gained fame for founding the algorithmic stablecoin TerraUSD (UST) and the platform token Luna. He claimed that UST could be stabilized at $1 through a complex algorithm and launched a lending protocol called Anchor with an annualized return of up to 20%, attracting the attention of global investors. However, in May 2022, UST and Luna collapsed in just five days, resulting in the evaporation of approximately $40 billion in market value and triggering a severe winter in the Crypto Assets market.

From a genius graduate of Stanford University to a leading figure in the Crypto Assets industry, and then to a globally wanted fugitive, Kwon Do-hyung's life trajectory is nothing short of dramatic. In 2018, he founded Terraform Labs and developed the once-popular stablecoin UST. This cryptocurrency, which claimed to be pegged to the US dollar, made Kwon Do-hyung a prominent figure in the international coin circle.

However, when UST first faced a depegging crisis in May 2021, Kwon Do-hyung did not rely on the advertised algorithmic mechanism, but secretly contacted a top crypto assets market maker with a Wall Street background for help. This action exposed the vulnerabilities of the UST system and laid the groundwork for future collapse.

The guilty plea of Quan Dao Heng not only marks the end of an era but also sounds the alarm for the Crypto Assets industry. This incident highlights the importance of regulation while reminding investors to remain vigilant in the face of high return promises. As judicial proceedings advance, the Crypto Assets industry may face stricter regulations and a more transparent operating environment.