Terra Co-Founders Face Lawsuit from South Korean LUNA and UST Investors
Table of contents
South Korean Law Firm to File Suit Against Terraform Co-Founders
According to a report from local media, several LUNA and UST holders have decided to file lawsuits against Terraform co-founders for the recent price collapse. They are being represented by law firm LKB & Partners, whose employees are also reportedly among LUNA holders.
“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, a partner at the law firm, told the local publication.
The Capital Markets and Intellectual Property law teams are also preparing an order to seize his property.
Since the collapse, the company’s legal team reportedly has also resigned. The South Korean Government is also considering summoning Do Kwon to testify in a hearing. The government has also taken up to launch “emergency” inspections of local crypto exchanges.
Do Kwon's Attempt to Revive the Terra Ecosystem
Meanwhile, Kwon has put forth several proposals in an attempt to save the Terra ecosystem.
On Monday, he described his latest plan to fork the existing Terra blockchain stating his plans to create a new Terra blockchain without the UST stablecoin.
Additional plans include renaming the old LUNA token to Terra Classic while airdropping 1 billion newly created LUNA governance tokens to every wallet that’s still staking or holding LUNA, UST, or Terra app developers.