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350 Investors File Lawsuit Against Do Kwon; $57M Compensation Await

Published Oct 29, 2022 05:03AM ET Updated Oct 29, 2022 05:30AM ET
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© Reuters. 350 Investors File Lawsuit Against Do Kwon; $57M Compensation Await
 
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  • Do Kwon received a Red notice from Interpol for immediate arrest.
  • 350 million investors issue a case against Kwon for the false portrayal of UST stablecoin’s price stability.
  • Kwon is to pay $57 million in compensation.

Terraform Labs founder, Do Kwon has recently been submerged in a number of legal cases since Terra LUNA and stablecoin UST crashed in May 2022. The latest addition to the legal investigations includes a Red notice issued by Interpol permitting instant arrest for Kwon after he failed to present himself in court as per orders.

In addition, 350 investors who have been impacted by the stablecoin’s collapse have also filed a lawsuit against the Terra founder. According to the lawsuit, the investors lost $57 million after UST depegged against USD, and the blame has landed on Kwon alongside the top five members of Terra.

The Terra team members have allegedly portrayed UST stablecoin’s price stability in a fake light, however, the Terra founder disagrees, stressing that the cryptocurrency was always designed to be pegged against the US Dollar.

Moreover, there are allegations that Do Kwon intentionally created the Anchor Protocol featuring a high-rate interest rate DeFi protocol in order to enforce further UST purchases on users.

The investors are claiming that Do Kwon falsely reassured users despite UST losing its peg against the USD in pay, resulting into a cryptocurrency-wide-market shakeout. Therefore, the investors anticipate a $57 million compensation which is the value of UST at the time of purchase.

Meanwhile, Do Kwon made a guest appearance on Laura Shin’s Unchained Podcast’s YouTube channel. During the discussion, he shared that he is upset about the Terra LUNA and UST stablecoin collapse, and is recovering by taking time off social media.

The post 350 Investors File Lawsuit Against Do Kwon; $57M Compensation Await appeared first on Coin Edition.

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350 Investors File Lawsuit Against Do Kwon; $57M Compensation Await
 

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