Terraform Labs’ Collapse Could Affect Over 1 Million Victims
According to the US government, Do Kwon, co-founder of Terraform Labs, may have affected the lives of over a million individuals through the collapse of the Terra ecosystem.
In response, Acting US Attorney Daniel Gitner has proposed using a website to inform victims of their rights, as traditional methods of notification may not be feasible due to the decentralized nature of cryptocurrency transactions.
This move comes after Do Kwon’s proceedings were made public by the US District Court for the Southern District of New York on January 6.
Terra, once the third largest cryptocurrency, lost its $50 billion value in just 72 hours in May 2022, and its founder’s lack of transparency in building a supposedly improved ecosystem has been called into question.
