Top Korean crypto firm decides to sue founder Terra

Do Kwon

Terraform Labs founder Do Kwon is about to face another bad situation over a new complaint about the demise of the Terra ecosystem.

Terraform Labs is a development team behind the Terra network. In the past week, Terra’s native coins UST & Luna collapsed due to panic selling under the critical market situation. The project team behind Terra is currently working on reviving the Luna coin through the Hardfork strategy.

On May 18, a South Korean media reported that LKB & Partners, one of the top law firms in South Korea, was planning to sue Do Kwon, CEO and founder of Terraform Labs.

LKB will file a complaint against Kwon on behalf of the financial difficulties faced by ordinary Korean crypto investors due to the sudden collapse of the Terra’ Luna and UST coin. Some regular crypto investors have filed a complaint against the founder of Terra with the Seoul Metropolitan Police Agency.

Report stated:

“There are related investors within the law firm and we will file a complaint against Kwon with the Financial Investigation Unit of the Seoul Metropolitan Police Agency,” Kim Hyeon-Kwon, a partner at LKB, told Munhwa Ilbo.

In addition to the police charge, LKB will legally force the agencies to seize Terra’s founder’s public property.

A separate report noted that in addition to filing a complaint against Kwon, LKB will also drag Daniel Shin, another Terra co-founder.

UST stable currency

Dollar pegged stablecoin UST was integrated with Luna coin to keep the price of UST stablecoin stable at $1. But under the very high panic sell situation, it collapsed to almost 10 cents.

At the time of writing this article, the current value of UST is $0.1, which is 90% lower than the pegged value of $1.

Last day, the bloc reported that the legal team behind the Terra project team had abandoned its support to defend itself against the recent critical situation.

Also Read: Coinbase Slows Down Its Hiring Wave Due To Critical Market Situation

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