Terra Luna CEO is facing a lawsuit

 As it appears to be Terra Luna co-founder and CEO, Do Kwon's troubles are not coming to an end. In addition to the ongoing investigation by federal lawsuit authorities, Do Kwon is also at the centre of a lawsuits, the most recent of which came to Crypto light recently.

Terra Luna CEO is facing a lawsuit

According to the Wall Street Journal's report from Friday, Terra Luna CEO is currently facing another lawsuit which was filed on September 23. Filed on behalf of over 350 investors, the lawsuit alleges "fraudulent misrepresentation" at the hand of Do Kwon. These allegations are in concern with the stability of Terra USD, Terra's algorithmic Stable coin.

The de-pegging of the stable coin and the eventual collapse of the Terra LUNA ecosystem triggered a market-wide crash back in May 2022 and caused billions of dollars' worth of losses to Terra investors. The lawsuit authorities also target Anchor calling its 20% APY and the protocol a "principal-protected stable coin savings product."

Countering the claims, Terraform Labs team stated,

"There is a difference between a public market event and fraud. The risks were publicly known, and the underlying code was open-sourced."

In addition to recovering investors investment losses, the claimants are also seeking to recoup some unspecified "aggravated damages".

The past and the future Terra Luna

While this lawsuit only took place a month ago, many others, such as class action suits from other legal firms such as Grant & Eisenhower, are yet to reach their conclusion.

Furthermore, Do Kwon has been on the government's lawsuit crosshair for months now. The South Korean prosecutors are already searching for Do Kwon, and just last month, Interpol issued a worldwide search warrant - a "red notice - in his name. 

Although Do Kwon has told that he is not on the run and is willing to fully cooperate with any government lawsuit, he is yet to be found.

Shiba Inu price could rally higher

Dogecoin price ready to rock

Post a Comment