Terraform’s CEO, Do Kwon, has long been wanted around the world. If you recall, the LUNA scandal was one of the most talked about issues last year. LUNA, whose value dropped from $80 to $0 overnight, indirectly caused millions in damages to hundreds of thousands of people.
What happened to LUNA founded by Do Kwon?
The value of LUNA Coin was reset by Terraform in one day. Trust in stablecoins was destroyed. In the next few days, everything collapsed. Even today people are arguing about Stablecoins and what to do. Today, the US-based cryptocurrency startup was accused of fraud.
The SEC accuses Terraform and its CEO Do Kwon of defrauding investors with the help of Terraform, the creator of the cryptocurrency LUNA and its related UST, whose value dropped from $80 to $0 in a matter of days last May.
The U.S. Securities and Exchange Commission (SEC) has filed fraud charges against Terraform Laboratories and its CEO Do Kwon for allegedly organizing a billion-dollar “cryptocurrency scheme.”
Has There Been A Similar Incident?
From April 2018 until the collapse of TerraUSD, also known as UST, and its “sister cryptocurrency” LUNA in May 2022, Kwon and Terraform allegedly sought to obtain billions of dollars from investors by producing and selling a “similar crypto package.”
The SEC says Terra’s share price fell below $1 in May 2021, and that Kwon then planned to buy a significant amount of UST with an unknown third party to bring the share price back to an “algorithmic” level.
Kwon’s current whereabouts are unknown, but the Terra co-founder is believed to have recently been in Serbia, according to South Korean intelligence.
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