Terraform Labs founder faces a new lawsuit from investors

Terraform Labs founder faces a new lawsuit from investors

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Terraform Labs founder faces a new lawsuit from investors

Do Kwon, founder of Terraform Labs, is now a party to a lawsuit brought by more than 350 aggrieved investors, who lost nearly $57 million in the UST unpegged event.

The class action alleges that Do Kwon and his subordinates intentionally misrepresented the price stability of the digital stablecoin UST.

The lawsuit states that investors believed Terra USD would be a stable digital currency by design and that its price would always be pegged to the dollar.

unrealistic promises:

Investors believe that Do Kwon intentionally built the Anchor Protocol, a high interest rate Defi protocol to lure customers to buy more UST.

Anchor Protocol was essentially a lending and borrowing platform that started with an interest rate of 20% and is the first of its kind in the industry.

Read:Cryptocurrency exchange BitMEX fails to acquire a German bank

In May 2022, the stablecoin mechanism failed and plunged into a death spiral, effectively losing all of its market capitalization in minutes.

The lawsuit alleges that despite UST’s failure, Do Kwon continued to raise hopes by tweeting for people to calm down, saying:

Everything is under control.

A spokesperson for Terraform Labs, who is also a defendant in the lawsuit, said in a statement that he has committed no wrongdoing and will defend himself until proven innocent.

“Do Kwon” faces multiple lawsuits:

The famous founder of Terraform is now facing several prosecutions and legal threats since the collapse of the digital stablecoin UST.

In September, South Korean authorities reportedly issued an arrest warrant for him, and even Interpol added him to its red list, thus asking law enforcement to locate and detain him if possible.

On the other hand, Do Kwon has been very active on social media and once tweeted that he makes no effort to hide from everyone.

It also gave the impression of working on the latest Terra blockchain, called Luna 2.0, and that there are new exciting developments coming.

Read:Find out the size of companies’ losses since the start of the recent decline in cryptocurrency prices

He also appeared on a few select talk shows and podcasts where he vehemently denied resorting to any kind of fraudulent activities.

The Terra founder received an order from the South Korean Ministry of Foreign Affairs on October 6 to bring in his passport or risk having it revoked.

Currently, Do Kwon’s whereabouts are unknown and he is allegedly a fugitive and is not complying with legal authorities.

Read also:

Binance confirms its investment in Elon Musk’s acquisition of Twitter

Bitcoin and Dogecoin Lead the Market Higher After Elon Musk’s Twitter Acquisition

And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Bitcoin price is stable above 20 thousand dollars, but the negativity in the movement is still present
Next post
Binance confirms its investment in Elon Musk’s acquisition of Twitter