The founder of the cryptocurrency Terra is accused of fraud for scam
Cryptocurrencies have proven to be a highly volatile asset, which can be highly valuable and then plummet to the point where it is impossible to recover. In the world of cryptocurrencies we have already seen everything, but we can summarize that scams, thefts and bankruptcies such as FTX have recently occurred. The collapse of cryptocurrency earth caused chaos in the sector and now the founder of this, Do Kwonhas been accused of ripping off $40 billion of market value.
We cannot deny that the cryptocurrency sector is not very trustworthy and projects like Terra and Luna created even greater mistrust. TerraUSD It was considered one of the most stable currencies in the world and despite that, it showed that even stablecoins keep their promises. And it is that, the currency went from being worth 1 dollar (ratio 1:1$) to cost only $0.02 in less than a month, one of the largest collapses in the industry. In fact, this sudden collapse caused falls in the value of the rest of the cryptocurrencies such as the Bitcoin and Ethereum and also a large number of millions of dollars in losses.
The SEC of the United States denounces the founder of Terra for fraud
Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
— US Securities and Exchange Commission (@SECGov) February 16, 2023
Do Kwon co-founded Terraform Labs in January 2018 with his fellow entrepreneur daniel shin. Kwon played his role as CEO of the company and a short time later launched a cryptocurrency called Moon. After some apparent success, Terraform Labs decided to take the next step with a stablecoin called TerraUSD (UST). Until April 2022 both coins were in a good position, with TerraUSD holding a value of practically $1, while Luna really lived up to its name and went to no less than 116 dollars. But it didn’t take long for it to go from being so high to being stamped with a value that only $0.006 in May 2022.
Here was the moment of the apocalypse, of chaos in the markets and that would be one of the biggest catastrophes in the cryptocurrency sector. Now the United States Securities and Exchange Commission (SEC) is not going to sit idly by and has issued a complaint against Do Kwon. The founder of Terra is accused of fraud and having created a fraudulent scheme that caused the loss of 40,000 million dollars.
Police forces around the world have been searching for him for months.
It is not the first time that they have gone after Do Kwon, since last September, South Korea issued an arrest warrant against him. In fact, the Interpol had also issued a red noticethat is, a alert all police forces in the world. But even using this international appeal, its location has not been discovered current. Terra’s founder accused of multi-million dollar scam is somewhere in the world, but no one knows where. According to the latest reports, South Korean police traveled to Serbian to intern locate it at the beginning of this month.
“Chai Payments they did not use the blockchain to process and settle money, but rather traditional media. We also allege that they committed fraud by repeating false and misleading statements to build trust before causing devastating losses to investors,” the lawsuit states.