South Korean investors are apparently ready to sue Do Kwon for fraud after the collapse of Terra last week.
Investors who lost money as a result of Terra’s collapse last week are expected to file a lawsuit against Terraform Labs co-founder and CEO Do Kwon, according to the South Korean legal firm LKB & Partners.
South Korean investors who lost money when Terraform Labs abruptly collapsed last week are going to sue co-founder and CEO Do Kwon for fraud, according to a story from Munhwa Ilbo on Wednesday. According to the information in the paper, the impacted investors are requesting that his property be temporarily seized. South Korean legal firm LKB & Partners has confirmed to local media that it plans to file an official police complaint against Kim Hyeon-Kwon, one of the company’s partners, at the Seul Metropolitan Police Agency.
As a result, according to Munhwa Ilbo, the Financial Investigation Unit of the Seoul Metropolitan Police Agency will be receiving a complaint against CEO Kwon. According to a report, the business intends to submit a request with the Seoul Southern District Public Prosecutor’s Office to obtain a temporary seizure of Kwon’s property next week.
Kwon and another Terra co-founder, Daniel Shin, may face several lawsuits in South Korea from various other groups of investors, according to social network buzz and local media sources. Terra, the project founded by Kwon and Shin, saw its UST and LUNA coins crash only a week before, sending it into a tailspin.
As a result of this, Terraform Labs, the business that Kwon and Shin formed to launch Terra, has had to cope with backlash from some Terra enthusiasts who want a new ecosystem to be launched without the company’s participation. Due to the departure of Marc Goldich, Lawrence Florio, and Noah Axler from Terra’s internal legal team, the firm is now without an internal legal counsel. According to their LinkedIn accounts, three of the company’s attorneys resigned in May.
Kwon will likely have to explain the Terra catastrophe to the South Korean government in addition to confronting LUNA and UST investors in court. On Tuesday, another local publication stated that South Korean parliamentary member Yun Chang-Hyun had asked for an emergency hearing on Terra, inviting local crypto exchange executives and Kwon as witnesses.
Also Read: Terraform Labs’ Legal Staff Resigns After The Collapse Of UST
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