Since the crash of Terra LUNA and stablecoin UST in May 2022, Do Kwon, founder of Terraform Labs, has been involved in a series of legal cases recently. The latest supplement issued by law and regulation research includes the red notice issued by Interpol, and Kwon can be arrested immediately after he cannot appear in court as instructed.
In addition, 350 investors who were affected by the collapse of stable currency also filed a lawsuit against Terra founder. According to this lawsuit, after the foreign science and technology institutes and the US dollars went their separate ways, the investors lost $57 million, and the obligations fell to Quan and Terra's top five members.
Terra team members learned that they described the price reliability of UST stablecoin from an untrue perspective, but Terra founder was unwilling. He emphasized that the cryptocurrency design was always linked to the US dollar.
In addition, it is alleged that Do Kwon intentionally created a guidance agreement with a low interest rate DeFi contract to force customers to further purchase UST
Investors claimed that Do Kwon improperly reassured consumers, even though UST lost its link with the US dollar, causing great turbulence in the cryptocurrency market. Therefore, the investor is expected to receive a compensation of 57 million dollars, which is also the value of UST at the time of purchase.
In addition, Do Kwon participated in the Unchained Podcast YouTube channel of Laura Shin. During the talk, he shared that he was anxious about the collapse of Terra Luna and UST stable currency, and had already repaired it with the help of social network rest.