Prosecutor to Establish Mechanisms for Victims of Terraform Labs Collapse
The prosecutor handling the case against Do Kwon, co-founder of Terraform Labs, has announced plans to set up mechanisms to contact and collect information from victims affected by the collapse of the Terra ecosystem.
Estimated Number of Victims Exceeds One Million
According to a report, the prosecutor, Daniel Gitner, estimates that the number of victims in this case exceeds hundreds of thousands of people and entities, potentially amounting to over one million. To facilitate the process, a web portal will be created to inform victims and provide procedures for making claims.
Gitner emphasized that the US government will seek to contact victims worldwide through various channels and ensure that their rights are honored. The estimate is based on the significant losses incurred by international investors, with over $40 billion in market value wiped out.
Challenges in Quantifying the Number of Victims
The decentralized nature of digital currencies and operations in major markets makes it difficult to specify an exact number of victims. However, it is known that the collapse of Terraform Labs resulted in significant financial losses for millions of investors.
Prosecution Process Advances
The prosecution’s efforts to contact and collect information from victims mark a significant step in the process against Kwon, who was extradited to the United States earlier this year. Kwon has pleaded not guilty to the charges and remains in police custody while attending due process.
Prosecutors have alleged that Kwon built a “financial ecosystem based on lies, manipulative techniques, and deception” to attract investors and business partners, resulting in multimillion-dollar losses for those affected.
Additional Charges from the US Securities and Exchange Commission
In addition to the ongoing process, Kwon will also face charges from the US Securities and Exchange Commission (SEC), which accuses him of engaging in fraud and marketing unregistered securities, including the tokens MOON and UST, as well as performance programs.