The South Korean prosecutor’s office will check the Terra project for signs of a financial pyramid in this regard. reported local news agency Yonhap cited sources.
Terraform Labs co-founder Do Kwon is accused of participating in a pyramid scheme.
Earlier, a group of South Korean investors filed a lawsuit against Kwon and his co-founder Daniel Shin, accusing the company’s founders of fraud and other financial irregularities related to Terra’s collapse. According to the indictment, Kwon was pyramiding by promoting unsustainably stable UST returns.
According to a spokesperson for a South Korean law firm representing the defendant investors, the Anchor Protocol could be considered a Ponzi scheme as it is unsustainable and requires new investors to continue getting rich.
Formerly socialbites.ca said He said that the creator of the Ethereum cryptocurrency has ceased to be a billionaire.
Source: Gazeta