The Terraform Labs founder, Do Kwon has been facing numerous legal charges and investigations since the time Terra network’s LUNA and its stablecoin UST collapsed in May. Recently, the founder has received a Red notice by Interpol to arrest him immediately. This notice was issued after Do Kwon failed to present himself in the court after he failed to appear before the court.
Now, with the new update, dow kwon, which has been running since May, is now sued by over 350 investors who have lost nearly $57 million after the UST delisted against the US dollar. According to the lawsuit, investors alleged that Kwon and other top members of Terra have misrepresented the price stability of the UST stablecoin. According to investors Terra USD was a token that was designed in such a way that it would always be pegged against the US Dollar.
Do Kwon To Pay $57M As Compensation
These investors are seeking a compensation of nearly $57 million which is worth the UST value at the time of their purchase and was held at the time of the crypto market downturn in May. The complainants also claim that Do Kwon purposely created Anchor Protocol which is high-interest rate DeFi protocol so that he can force customers to purchase more UST.
Furthermore, the investors who filed the lawsuit believe that even though the US dollar lost its peg against the US dollar in May, the overall crypto market declined, with Du Kwon making a false assurance that Everything is under control.
However, a spokesperson of Terraform Labs the company has not carried out any illegal activities and they will fight until they are proven as not guilty.
Do Kwon, on the other hand, appeared on a YouTube channel called Unchained Podcast, hosted by Laura Shin, where she expressed her sadness about the collapse of Terra (LUNA) and the UST Stablecoin losing its peg against the US Dollar. At present it appears that they have decided to go numb on social media as no activity has been reported.
