• Terra CEO is facing a lawsuit for the fraudulent misrepresentation of TerraUSD.
  • The claimants seek to recover their investment losses and other unspecified "aggravated damages."
  • Just a month ago, Interpol issued a red notice in the name of Do Kwon.

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

Another one

According to the Wall Street Journal's report from Friday, Do Kwon is currently facing another lawsuit which was filed back 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 TerraUSD, Terra's algorithmic stablecoin. 

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

Countering the claims, Terraform Labs spokesperson stated,

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

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

The past and the future

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

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

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


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP