A South Korean law firm is suing Terraform Labs founder and CEO Do Kwon over last week’s Terra collapse. The firm will also be filing warrants to seize Kwon’s property:
Investors Stand Against Do Kwon
Kwon and Terraform co-founder Daniel Shin are the subject of a class-action lawsuit from Seoul-based law firm LKB & Partners, filed in the wake of the Terra downfall, with possible criminal charges to follow:
There are related investors inside the law firm, and we will file a complaint against Kwon at the Financial Investigation Unit of the Seoul Metropolitan Police Agency.
Kim Hyeon-Kwon, partner, LKB & Partners
LKB & Partners will sue on behalf of the investors who have lost money because of the UST crash, with some of the impacted Terra employees set to join the suit. LKB & Partners will also file a police complaint and a bid to seize Do Kwon’s property as compensation.
Unfortunately for the Terraform Labs founders, multiple members of the company’s in-house law firm have resigned. While it remains unknown why these employees resigned at the beginning of the crash, it has left Do Kwon in a tough position.
What’s Happening with LUNA?
The news of the collapse of Terra has been hard to miss lately; however, this controversy is the outcome of the depegging of Terra USD (UST). Previously one of the largest stablecoins on the market, the resulting knock-on effects have been immense, including the sinking of LUNA and a negative impact on the DeFi industry.
Kwon has, however, proposed a revival plan for Terra. It constitutes a restart of the entire Terra blockchain and the distribution of one billion new tokens – a plan ex LUNAtics are highly opposed to.
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