Luna Investors Apply for Seizure of Do Kwon’s Property in Class Action Lawsuit

May 20, 2022, 10:00 AM AEST - 2 months ago

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.

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.