Victims of the collapse of the Terra ecosytem, which wiped out over $60 billion of investors’ funds, have been speaking up and calling for Do Kwon and entities related to him to be brought to justice.
In a Twitter thread, ‘FatManTerra,’ a pseudonymous finance investor who has been providing updates on the Terra situation, shared several stories about the experience of victims of the wipeout.
In several of the cases, the victims reckoned that even when they had doubts about the investments, they did not exit their positions due to assurances made by Kwon. One such assurance often noted was his tweet for the community to “hold steady” as he was “deploying more capital” to maintain the UST peg to $1.
He also alleged that amid the debacle, Kwon, TFL, and LFG cashed out “hundreds of millions of dollars through the liquidity fraudulently generated by roping retail investors into a ‘savings product.'” The analyst pointed out that each of these stories points to not just lost savings, but human lives lost, lost time, and also lost relationships.
Describing the sad tales to be Do Kwon’s legacy of fraud, FatManTerra implored the crypto founder to come forward to face his arrest warrant and court cases.
“The fallen will not be forgotten. I, we, will do everything in our power to bring Do Kwon to justice. We implore him to come forward and face his arrest warrants and court cases. If Do Kwon is free to scam again, then there is no justice in crypto,” FatManTerra wrote.
Do Kwon and Terra executives continue to claim innocence
FatManTerra is notably the leader of the class action suit investors filed in the U.S. against Terraform Labs (TFL), Jump Crypto, Jump Trading LLC, Republic Capital, Republic Maximal LLC, Tribe Capital, DeFinance Capital/Definance Technologies Oy, GSR Markets Limited, and Three Arrows Capital Ptd Ltd. (collectively, the “Luna Foundation Guard”), as well as individual defendants Nicholas Platias and Do Kwon.
The investors are being represented by U.S.-based attorneys Scott+Scott. In a recent development, the suit has been joined by a group of Terra investors from India.
Amid the allegations, Do Kwon and entities related to the debacle including TFL and Luna Foundation Guard (LFG) have maintained that no fraud was committed in the crash. In a recent statement, Kwon called the reports around the case ‘misinformation.’
Similarly, TFL told the Wall Street Journal that it considers the actions of prosecutors in South Korea targeting the company and its executives to be overreach as Luna was not legally a security and hence is not covered by South Korea’s capital markets law.