Terraform Labsโ co-founder, #DoKwon , will be embroiled in a lengthy legal case following the latest disclosure. Kwon was allegedly involved in the capitulation of the projectโs algorithmic stablecoin, TerraUSD.
The stablecoin depegged in 2022, sparking the notorious crash of the networkโs native token, $LUNA
. As a result, the implosion wiped out over $40 billion from the cryptocurrency market and catalyzed a series of bankruptcy filings from major digital asset firms considerably exposed to the ecosystem.
Meanwhile, with the case still new, the prosecutors stated that converging victims of the fallout for a fair trial was unrealistic due to the large number. However, the government proposed creating a website to update affected entities on the legal process.
Furthermore, the prosecuting council will allow victims exposed to the $40 billion wipeout to participate in the legal process. Interested parties can come forward and testify against Do Kwon and Terraform with evidence.