- After the collapse of Terra last week, investors develop a lawsuit against the CEO of Terraform Labs for fraud.
- This decision was also prompted after it became known that Terraform Labs’ internal legal counsel resigned in the midst of the crisis.
- It should be remembered that LUNA sank more than 99%, while the stablecoin UST lost its parity with the dollar and plummeted to 10 cents.
- According to a report published by a South Korean media outlet, the affected investors are seeking a provisional seizure of Do Kwon’s property.
A South Korean outlet called Munhwa IIbo published a report claiming that the law firm LKB & Partners is preparing a lawsuit against Terraform Labs CEO Do Kwon for fraud on behalf of investors financially harmed by the collapse of Earth last week.
The collapse of Terra escalated so much that the problem would reach the Judiciary of South Korea. Let us remember that LUNA collapsed by more than 99% and the stable currency of the Terra ecosystem, UST, lost its parity with the dollar and today trades at 10 cents. This caused thousands of investors to go bankrupt.
That’s why investors are going all out and the plaintiffs will reportedly seek a provisional seizure of Do Kwon’s property.
“There are related investors within the law firm, and we plan to file a complaint against CEO Kwon with the Financial Investigation Unit of the Seoul Metropolitan Police Agency. ”
Munhwa Ilbo.
Other media outlets in the country reported that there are more plaintiffs against Kwon and Terra co-founder Daniel Shin. On the other hand, Terraform Labs has been left without internal legal counsel after its internal team, made up of Marc Goldich, Lawrence Florio and Noah Axler, resigned following the implosion of Terra.
This is just the beginning of a “novel” that could have many more chapters and could even end with Kwon behind bars if his guilt is proven.