Trouble for Do Kwon is mounting, and after South Korea, the USA, and Interpol has issued arrest warrants, Do Kwon faces a $57 Million filed by duped investors in Singapore.
The founder of Terraform Labs, Do Kwon, is facing a lawsuit filed by more than 350 investors who were duped by $57 Million in the UST de-pegging event.
Kwon and his associates had purposefully distorted the price stability of its UST stablecoin. Investors were made to believe that Terra USD would be the token and it would be stable since it is pegged to the US Dollar.
Do Kwon Created Improbable Possibilities
For his part, Do Kwon created the Anchor Protocol, a high-interest Defi protocol to attract consumers to purchase more UST. The protocol was a lending and borrowing platform and started with an interest rate of 20%, which was never seen in financial circles.
Things looked fine until May 2022, when the stablecoin ecosystem collapsed and went to its annihilation. All the market values were lost in the space of a few minutes. Despite the crash, Kwon kept giving positive signals and denied that anything was wrong.
Terraform Labs spokesman, however, said that it had not done anything wrong and will defend its image unless proven guilty.
Do Kwon Indicted For Numerous Charges
Since the UST collapse, Do Kwon has faced several legal prosecutions and threats. The South Korean authorities issued an arrest warrant against him, and Interpol has also issued a Red Corner notice across the globe. However, Do Kwon has been able to evade the authorities and law enforcement agencies.
Kwon is apparent on social media platforms. He even said that he was not making any effort to hide. He also stated that he is working on the newer Terra blockchain, Luna 2.0. He was regularly featured in selected talk shows and podcasts where he passionately negated resorting to fraudulent activities or wrongdoings.