Last Updated on October 29, 2022 by Bitfinsider
Do Kwon, who is already wanted by South Korean authorities and the Interpol, now has a new blaze to put out after more than 300 Singaporean investors opted to sue the Terra Labs co-founder on a class action basis.
The 357 investors from the Singapore were forced to take the dispute to court after losing $57 million. The plaintiffs contend that Do Kwon and his allies duped them into thinking the UST stablecoin’s value was, as the name implies, “stable” and would always be anchored to the dollar.
Additionally, they said that the person named on the Interpol Red Notice purposefully created the lending and borrowing platform Anchor Protocol in order to persuade more people to purchase the digital commodity.
Do Kwon’s assurances were readily broken on May 9, 2022, when the TerraUSD (UST), which had been worth $18 billion at the time, collapsed.
The cryptocurrency crashed to $0.35, failing to hold onto its $1 peg. The token LUNA, which was intended to stop the UST price from plummeting significantly, actually underwent a tremendous price dump, dropping from $80 to just a few cents.
Three steps made up the collapse of the TerraUSD, which began when two traders broke the peg. By spending $2 billion on UST, Terraform Labs and three sponsors attempted to “fix” the problem. This caused an uncontrollable sell-off, which depleted the funds.
Do Kwon Has Yet To Be Found
Since since, Do Kwon’s whereabouts have remained a mystery as the wanted man has managed to avoid capture, leaving duped investors in a hopeless situation.
Authorities have taken steps to limit his options, including as adding him on Interpol’s red notice. Kwon was recently asked to turn in his passport by South Korean law enforcement, and if he doesn’t, it will be revoked.
Do Kwon might be in Dubai, according to the most recent information we have on his whereabouts. But no concrete evidence supporting this has been offered.
The co-founder of Terra has emphatically denied being on the run, seeking to persuade the crypto community that he is not making any effort to hide from anyone while remaining silent in the face of all this.
Kwon might decide to step up his game in dodging capture as he refuses to surrender and accept responsibility for his faults that caused many individuals to lose a lot of money as his legal problems mount.
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