The SEC are now suing Do Kwon, stating that the founder of Terra, “perpetuated a fraudulent scheme that led to the loss of at least $40 billion of market value.”
South Korea has already issued the warant for Do Kwon’s arrest and released a ‘red notice’ for the whereabouts on him. South Korean police are searching for him continously, having started last year in September, they are now searching in Serbia as well.
“Almost immediately upon UST’s recovery in May 2021, Terraform and Kwon began to make materially misleading statements about how UST’s peg to the dollar was restored. Specifically, Terraform and Kwon emphasized the purported effectiveness of the algorithm underlying UST in maintaining UST pegged to the dollar – misleadingly omitting the true cause of UST’s re-peg: the deliberate intervention by the U.S. Trading Firm to restore the peg,” the complaint by the SEC stated.