Do Kwon, now a fugitive wanted by South Korean prosecutors and the Interpol, has a new fire to put out as more than 300 investors from Singapore decided to file a class action lawsuit against the Terra Labs co-founder.
The 357 capitalists from the Asian nation had no choice but to bring the fight to court as they lost $57 million. The plaintiffs claim that Do Kwon and his cohorts deceived them by making them believe that the value of the UST stablecoin is, as the word says, “stable” and will always be pegged to the U.S. dollar.
They also accused the Interpol Red Notice listed personality of intentionally building the lending and borrowing platform Anchor Protocol that was used to convince more people into buying the digital asset.
TerraUSD Collapses: What Went Wrong?
On May 9, 2022, Do Kwon’s promises easily went down like sand castles being washed away by waves as the TerraUSD (UST), valued at $18 billion back then, collapsed.
The crypto failed to maintain its $1 peg as it plummeted to $0.35. LUNA, a token that was supposed to prevent UST price from falling sharply, ended up experiencing a massive price dump, from $80 to just few cents.
The TerraUSD collapse had three stages starting with two traders breaking its peg. Terraform Labs and three supporters tried to “repair” the issue by purchasing $2 billion worth of UST. This resulted into an uncontrolled sell-off that drained the funds.
That did not stop there as the development hyper-inflated LUNA and ultimately crashed the prices of the two assets, causing the crypto market to lose over $40 billion.
Terra Co-founder Do Kwon remains out of sight. Image: Coincu News
Do Kwon Still Nowhere To Be Found
Since then, Do Kwon’s present whereabouts remain unknown as the fugitive continues to evade arrest, making deceived investors frustrated and desperate.
There are moves done by authorities to bottleneck his options, such as having him added to the red notice of Interpol. South Korean law enforcement agencies also recently asked Kwon to surrender his passport and his failure to do so will result in revocation.
Latest reports gathered about his present location suggest Do Kwon might be in Dubai. However, no definitive proof of this has been presented.
Although remaining quiet in the face of all this, the Terra co-founder has categorically denied being on the run, trying to convince the crypto community that he is not exerting any effort to hide from anyone.
As his legal woes pile up, Kwon might decide to amp his game in evading capture as he refuses to surrender and own up to his mistakes that made a lot of people lose a lot of money.
BTC inching closer to the $21K mark on the weekend chart | Featured image from Medical News Today, Chart: TradingView.com
Christian Encila
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