The post Do Kwon and Terraform Labs’ Mysterious Saga Unfolded: Report appeared on BitcoinEthereumNews.com.

Crypto influencer Rasgard accuses Do Kwon of fraud in the Terra Luna collapse. The SEC filed a lawsuit against Terraform Labs and Do Kwon. Terra Luna’s collapse sparked regulatory scrutiny of the crypto market. Crypto influencer Rasgard recently took to X (formerly Twitter) to shed light on the alleged wrongdoings of Do Kwon and the now-bankrupt Terraform Labs, the company behind the $40 billion collapse of the Terra Luna stablecoin project. Rasgard accused Kwon of deception and manipulation, stating that the Terraform Labs founder “always played his own game and misled people.” This is Do Kwon. Net worth over $3 billion. Founder of Luna and UST, whose collapse wiped out $45 billion in one week. Here’s the untold story behind it 🧵👇 pic.twitter.com/I4Db8k4NXk — Rasgard (@rasgard_lodbrok) July 7, 2024 Terraform Labs, a once-prominent blockchain platform, filed for bankruptcy protection with an estimated loss of $40 billion. Rasgard’s X post details the downfall of Terraform Labs and the alleged role of its founder, Do Kwon, actions that ultimately led to a lawsuit by the U.S. Securities and Exchange Commission alleging that they misled investors and violated securities laws. Founded in 2018, Terraform Labs secured millions in funding from prominent investors like Binance, Coinbase, Arrington XRP Capital, and Polychain Capital, quickly gaining traction in the industry. The platform launched the LUNA token and the TerraUSD (UST) algorithmic stablecoin, which was designed to maintain a 1:1 peg with the U.S. dollar through a complex mechanism involving LUNA. Rasgard alleges that through a secret deal with Jump Trading, UST lost its peg for the first time in May 2021. Kwon allegedly misled the public by claiming that the token “automatically self-heals” by design. Furthermore, Rasgard accuses Terraform of faking transactions on the Chai payments platform to create the illusion of legitimate activity. Kwon even…

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Filed under: News - @ July 8, 2024 7:16 am