Millions of people across the globe have suffered massive losses as a result of the TerraUSD crash. Amongst them the South Korean LUNA & UST investors have decided to file a lawsuit against Kwon Do-hyung, the CEO of Terra.
The law firm, LKB & Partners plans to file a lawsuit for fraud and request for provisional seizure of properties of Terraform Labs CEO Kwon Do-hyung.
“There are related investors inside the law firm, and we plan to file a complaint against CEO Kwon at the Financial Investigation Unit of the Seoul Metropolitan Police Agency,” said Kim Hyeon-kwon, a partner at LKB & Partners.
The law firm is also reviewing a lawsuit against the co-founder of Terra, Shin Hyun-seung who claims to have left the company in 2020.
Chai Corporation, the company where Shin is currently employed, informed its users on its website that the company is not associated with Terraform Labs or associated with cryptocurrencies.
Investors are also planning to file a complaint with the Seoul Metropolitan Police Agency against the CEO on charges of fraud.
A South Korean online community launched on May 13 for Terra-Luna investors that have suffered losses has also garnered 2,100 members.
Two days later, an administrator from the online community started mobilizing investors to sue the co-founders of Terra in a class-action lawsuit for fraud and illegal fundraising.
Yun Chang-Hyun, a member of South Korea’s People Power Party has also demanded a parliament hearing on the TerraUSD crisis in the presence of its officials.
The crash of the Luna coin dropped its market capitalization to 1.6 trillion won from 52.7 trillion won in one day, dealing a massive loss to the investors.
