Thursday, October 16, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Terra’s Do Kwon Facing Yet Another Lawsuit

by Mike Dalton
October 29, 2022
in Cryptocurrency
Reading Time: 3 mins read
A A
0
Home Cryptocurrency
Share on FacebookShare on Twitter


Key Takeaways

  • Do Kwon and other members of Terraform Labs face a class action lawsuit from over 350 investors.
  • The lawsuit alleges that TerraUSD’s price stability and Anchor Protocol returns were misrepresented.
  • Do Kwon also faces criminal charges in South Korea; his current whereabouts are still unknown.

Share this article

Do Kwon and others involved in the TerraUSD project are facing a $57 million class action suit from aggrieved investors.

Terra Lawsuit Alleges Fraud

Do Kwon and associates are facing yet another court case that could come with massive civil penalties.

According to the Wall Street Journal, Kwon faces a class action suit on behalf of investors who lost $57 million during the collapse of TerraUSD stablecoin. Those investors are now seeking their lost funds as well as aggravated damages.

The class action suit alleges that Kwon and others fraudulently misrepresented TerraUSD’s price stability. Investors “believed that [TerraUSD] would be a token that was stable by design [and] whose price would always be pegged to the US Dollar,” the text of the lawsuit reads.

Additionally, investors believed that the stablecoin would offer “attractive APY returns” when staked in Anchor Protocol—Terraform Labs’ lending and borrowing service.

However, TerraUSD stablecoin’s price mechanism failed in May, causing the asset to lose its peg with the U.S dollar and lose virtually all of its market value.

The lawsuit alleges that, despite promises, TerraUSD was not “stable by design,” was unable to maintain its price peg, and was unable to recover from losses.

It also alleges that token holders did not have the ability to trade TerraUSD for the equivalent amount of Luna after the project’s swap mechanism was disabled in May.

Finally, it alleges that Anchor was not “principal guaranteed” and did not provide a sustainable 20% yield as promised.

Lawsuit Is One of Many

The lawsuit was filed in September but went mostly unnoticed until coverage from the Wall Street Journal today.

In a statement to the newspaper, a Terraform Labs representative denied any wrongdoing. She dismissed TerraUSD’s collapse by stating that there is a “fundamental difference between a public market event and fraud” and added that Terra’s risks were publicly known.

The lawsuit is being handled by Drew & Napier, one of Singapore’s “Big Four” law firms. It concerns over 350 investors from Spain, Australia, Singapore, and elsewhere.

It names Terraform Labs CEO Do Kwon plus company members Daniel Hyunsung Shin and Nikolaos Alexandros Platias as defendants. Terraform Labs and the Luna Foundation Guard are also named as defendants.

Today’s newly-publicized lawsuit is not the only case against the project and its members. Kwon and others additionally face other class action suits from firms such as Bragar Eagel and Squire, Scott+Scott, and Grant & Eisenhofer.

Kwon also faces criminal charges in South Korea. In September, Interpol issued a red notice against Kwon in an attempt to restrict Kwon’s movement internationally. His whereabouts are still unknown.

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source link

Tags: facingKwonlawsuitTerras
Previous Post

Cassava Sciences’ Motion To Dismiss Action Made Public – Key Takeaways (NASDAQ:SAVA)

Next Post

Crypto Lobbyist Group Blockchain Association Asks Court for Permission to Support Ripple Against SEC Case

Related Posts

Are miners now web accumulators? Marathon provides 400 BTC after the crash

Are miners now web accumulators? Marathon provides 400 BTC after the crash

by Index Investing News
October 15, 2025
0

Bitcoin (BTC) miner MARA Holdings purchased 400 BTC for roughly $46 million on Oct. 13, capitalizing within the market collapse...

Citi Warned Stablecoins Could Drain Banks, Now Backs Their Tech

Citi Warned Stablecoins Could Drain Banks, Now Backs Their Tech

by Steven Walgenbach
October 10, 2025
0

Be a part of Our Telegram channel to remain updated on breaking information protection Citigroup has invested in stablecoin infrastructure...

M crypto shorts liquidated in the past hour

$80M crypto shorts liquidated in the past hour

by Vivian Nguyen
October 5, 2025
0

Key Takeaways Roughly $80 million in crypto quick positions have been liquidated in a single hour. Brief positions guess on...

Solana Ecosystem To Gain Boost With New Alliance Between Crypto.com And Sharps Technology – Details

Solana Ecosystem To Gain Boost With New Alliance Between Crypto.com And Sharps Technology – Details

by Godspower Owie
September 30, 2025
0

Trusted Editorial content material, reviewed by main trade consultants and seasoned editors. Advert Disclosure The Solana blockchain is unquestionably within...

Shiba Inu Price Eyes Recovery From Demand Zone

Shiba Inu Price Eyes Recovery From Demand Zone

by Coingapestaff
September 25, 2025
0

The Shiba Inu worth has drawn consideration as its chart reveals tightening consolidation close to a key demand zone. The...

Japan’s debt reckoning and the global economic warning

Japan’s debt reckoning and the global economic warning

by Christina Comben
September 20, 2025
0

Japan’s monetary markets are sending out a warning siren, not only for Tokyo, however for the remainder of the world....

Next Post
Crypto Lobbyist Group Blockchain Association Asks Court for Permission to Support Ripple Against SEC Case

Crypto Lobbyist Group Blockchain Association Asks Court for Permission to Support Ripple Against SEC Case

GM pauses paid advertising on Twitter as Chief Twit Elon Musk takes ownership • TechCrunch

GM pauses paid advertising on Twitter as Chief Twit Elon Musk takes ownership • TechCrunch

Kinnevik AB (KNVKF) Q3 2025 Earnings Call Transcript

Kinnevik AB (KNVKF) Q3 2025 Earnings Call Transcript

October 16, 2025
From Magnificent To Stretched: Rethink U.S. Equity Allocations

From Magnificent To Stretched: Rethink U.S. Equity Allocations

October 16, 2025
Insurrection Act: What is it, and does US president have plenary authority? | Donald Trump News

Insurrection Act: What is it, and does US president have plenary authority? | Donald Trump News

October 16, 2025
FMCG giant to cut 16,000 jobs over two years — What company said

FMCG giant to cut 16,000 jobs over two years — What company said

October 16, 2025
Axis Bank, HDFC Life And L&T In Focus — Check Price Target

Axis Bank, HDFC Life And L&T In Focus — Check Price Target

October 16, 2025
Knifeman goes on horror rampage wielding two blades & stabbing one in Brit holiday hotspot before cops tasered him

Knifeman goes on horror rampage wielding two blades & stabbing one in Brit holiday hotspot before cops tasered him

October 16, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Kinnevik AB (KNVKF) Q3 2025 Earnings Call Transcript

From Magnificent To Stretched: Rethink U.S. Equity Allocations

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In