Do Kwon Is Facing Another Class-Action Lawsuit: Report

Do Kwon is facing another class-action lawsuit but this time in the United States with the complaint seeking to represent investors who invested in TErra between May 2021 and May 2022 as we are reading more today in our latest cryptocurrency news.

Do Kwon is facing another class-action lawsuit and a host of other crypto entities over the weekend and the suit level multiple charges like racketeering against the defendants. Do Kwon faces multiple lawsuits in South Korea already after the fallout of the Terra implosion and both entities were accused of misleading the investors and racketeering.

The class-action suit filed in California claims that Terraform Labs and other entities like its CEO Do Kwon, jump Crypto, Defiance capital and Three Arrows Capital are responsible for leading the retail investors into purchasing the Terra ecosystem tokens at high prices and made endorsing or false statements, aiding and abetting and civil conspiracy but also racketeering. The filing calls for anyone that purchased terra tokens including but not limited to the Terra blockchain native assets, UST, and LUNA between May 2021 and May 2022 to take part in the action.

Terra suffered a dramatic collapse when the algorithmic stablecoin lost its peg to the US dollar and triggered a death spiral wiping out $40 billion from the market in a few days. A few major crypto players like There Arrows Capital were hit hard when LUNA crashed to Zero and the market also dropped which resulted in a domino effect that spilled on the entire industry. In the meantime, Kwon and Terraform Labs were dealing with the fallout and Terra tried to revive itself with a forked blockcahin that omitted the failed stablecoins design but it struggled to gain any momentum so now luna trades over 90% of its high.

Kwon faces multiple lawsuits from investors in South Korea who can be charged with running a Ponzi scheme and the parliament also started looking into the matter. The complaint filing came three weeks after prosecutors from SK and the US met to share information about the ongoing investigations of the Terra collapse. While Kwon faces charges in South Korea, he is likely residing in Singapore and the headquarters are also located there after shutting down the subsidiary in South Korea.