Finst

Terra founder charged with $57 million

Do Kwon, founder of the failed Terra blockchain project (LUNA), is being charged by 350 investors in Singapore, according to the Wall Street Journal.

By Finst News
• 2 min read
Terra founder charged with $57 million

Do Kwon, the founder of the failed Terra blockchain project (LUNA), is being charged by 350 investors in Singapore, according to the Wall Street Journal. The class action lawsuit centers on a total of $57 million.

The plaintiffs accuse Do Kwon of "fraudulent misrepresentation" over the stablecoin UST linked to Terra. They’re seeking the invested money back, plus damages.

In May, the LUNA token and its linked UST stablecoin collapsed in a death spiral. It cost investors billions of US dollars worldwide. Some viewed the Terra-based lending platform "Anchor Protocol" as a Ponzi scheme that would trigger the ecosystem’s collapse.

Interpol is also seeking the Terra project chief on suspicion of fraudulent practices that led to the stablecoin’s downfall. Authorities in Kwon’s home country of South Korea are also pursuing the Terra founder. There has been a lot of ambiguity around Kwon’s whereabouts in recent months. He has claimed he isn’t a fugitive. Last week, he was even reportedly seen at a Lisbon nightclub — but the photos were quickly debunked.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.