The rise and fall of Terraform Labs, followed by the legal reckoning for its founder Do Kwon, stands as one of the defining episodes in the brief yet turbulent history of cryptocurrency. More than a tale of technological failure or market volatility, the implosion of TerraUSD exposed a deeper and more troubling reality of innovation pursued without accountability. At its height, TerraUSD was promoted as a breakthrough — an algorithmic stablecoin designed to maintain parity with the dollar without traditional reserves. The promise was seductive. It offered a decentralized, efficient alternative to legacy financial systems, seemingly liberated from central banks and institutional oversight. Yet beneath the rhetoric lay a structure resting on fragile assumptions and circular incentives. Its stability depended not on fundamentals, but on confidence alone. When that confidence collapsed in May 2022, the consequences were swift and devastating. Nearly $40 billion in market value evaporated within days. Retail investors across Asia, Europe and the Americas suffered catastrophic losses, many