The collapse of LUNA and UST was one of the most significant of the entirety of 2022 thanks to the fact that it set into motion so many other disastrous events of the year’s bear market.
Do Kwon was a significant player in the space, and had become well-known for his larger-than-life personality and confidence when it came to his projects.
Now, Terraform Labs is being investigated by the authorities in Singapore, who believe that Do Kwon may have been responsible for a variety of different legal violations.
The Singapore police began investigating Do Kwon and the company he founded, Terraform Labs, and have confirmed that Do Kwon is not in Singapore. The US SEC last month accused Kwon and Terraform Labs of fraud. BBG
— Wu Blockchain (@WuBlockchain) March 6, 2023
What laws did Do Kwon break?
There is a lot of speculation over the degree to which Do Kwon misled investors over the security of his project and how much he actually understood about LUNA and UST’s vulnerabilities.
A variety of different jurisdictions have therefore launched legal challenges again him and Terraform Labs, since they believe that he could be guilty of many different violations, from breaking securities laws to outright financial fraud and market manipulation.
Regulatory agencies around the world have been responding to the drama of crypto in 2022, and although Do Kwon may be able to make the case that he genuinely believed in his project and didn’t commit direct theft in the same way that SBF did, his incompetence did cause investors to lose all their money, which had a disastrous impact.
What does this mean for other villains of 2022?
Despite the legal challenges that are being launched against Do Kwon, there is still a significant degree of resentment in the space over the fact that key figures like Alex Mashinsky remain free after losing investors billions of dollars.
Other key figures that remain in the crosshairs of public opinion include SBF, and more recently Barry Silbert, who is still doing all that he can to save DCG from total implosion, despite the fact that the company may well now be functionally insolvent.
It remains to be seen whether or not we are now fully out of the bear market, and whilst most analyst snow believe that the worst of the bear market now be in the past, there are several reasons as to why investors ought to remain cautious.
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