Will Do Kwon Compensate $57M To Terra USD Investors? Here’s What You Need To Know
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 fresh update, Do Kwon who has been on the run since May has now been charged with a lawsuit by more than 350 investors who have lost around $57 million after UST was depegged against the US dollar. As per the lawsuit the investors blame that Kwon and other top members of Terra have falsely portrayed UST stablecoin’s price stability. As per the investors Terra USD was a token which was designed in such a way that it would always be pegged against the US dollars.
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.
Moreover, the investors who have filed the lawsuit believe that even though the UST lost its peg against the US dollars in May bringing down the overall crypto market, Do Kwon gave 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.
On the other hand, Do Kwon appeared on a YouTube channel called Unchained Podcast hosted by Laura Shin where he expressed grief about Terra (LUNA) collapse and UST Stablecoin losing peg against the US dollars. At present it appears that he has decided to go numb on social media as there is no activity reported.Source