Do Kwon manipulated the LUNA exchange rate

South Korean prosecutors have received evidence that Terraform Labs CEO До Квон" href="https://noworries.media/biography/do-kvon/" data-bio-id="3665">Do Kwon manipulated the price of the LUNA cryptocurrency. This is reported by the Korean Broadcasting System with reference to a representative of the country’s supervisory agency. According to him, the authorities have a correspondence between Kwon and one of his employees.

«I cannot disclose the details, but it was a story of conversations [у месенджері - ред.] in which the CEO of [До Квон] specifically ordered to manipulate prices,» said a member of the South Korean supervisory authority.

According to media reports, a proxy representing Do Kwon denied the allegations. The media also noted that the head of Terraform Labs is currently living «somewhere in Europe.»

At the end of March, the price of the native token of the Terra ecosystem reached $ 107. The growth of LUNA was accompanied by a surge in trading volume. This happened against the backdrop of active bitcoin purchases by the nonprofit organization Luna Foundation Guard to ensure the stability of the TerraUSD (UST) algorithmic stablecoin. on May 8, UST lost its peg to the US dollar after the outflow of assets from the Anchor protocol, which was due to a decrease in the rate of return on deposits to 17.87%. on May 10, the asset’s quotes dropped below $ 0.62. The decline continued on May 11, after which the LUNA cryptocurrency used to issue UST fell to $ 0.3. These events led to the collapse of the Terra ecosystem.

As a reminder, the cryptocurrency developer Luna is being sued for $ 57 million. 359 investors accuse Kwon and his colleagues of deliberately defrauding investors. However, in order to return the funds to investors and punish Do Kwon and his partners, the founder of Terraform Labs must first be found. Interpol and another 4,400 former Terraform Labs investors are currently working on this.