Terra reacts to lawsuit against Do Kwon, allegations highly politicized

The collapse of algorithmic stablecoin Terra and its native token LUNA remains a shocking event in the crypto space. Billions of dollars have been lost to many individual and institutional investors as a result. It also plunged the entire cryptocurrency industry into a historic crisis. A lot has changed since the collapse of stablecoins.

Subsequently, several investigations and lawsuits were filed against Terraform Labs founder Do Kwon. First, South Korean prosecutors have leveled several allegations against Terra his chief.

The International Criminal Police Organization (INTERPOL) also issued a red notice against him. Interpol’s request calls for the immediate arrest of Dokwon worldwide by law enforcement agencies.

The collapse of Terra and its ecosystem in the first half of this year has resulted in a significant loss of over $60 billion in investor capital. South Korean prosecutors have requested Interpol’s assistance in arresting Kwon.

Prosecutors accused Chief Terra of hiding to avoid their investigation. Sources said Kwon was spotted in Singapore, but city police said he later left.

Terra says the case against Kwon is very heated

Prices for the Terra Classic (LUNC) and the newly launched Terra LUNA have fallen slightly following an alert from Interpol. There are also rumors that Kwon has disappeared since Terra and its ecosystem collapsed.

Terraform Labs has finally responded to the lawsuit against Do Kwon. The company said in an interview with Bloomberg that the case was highly political.

A spokesperson said the prosecution failed to abide by basic rights available under South Korean law.

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