Do Kwon Faces Lawsuit From Korean Investors; The founder of Terra could lose his properties

KEY POINTS

  • Do Kwon faces several lawsuits after the collapse of Terra
  • Lawsuits come as Terra’s in-house legal team has already resigned
  • LUNA is trading down 20.26% at $0.0001466

Terra’s South Korean investors have slapped Do Kwon with criminal and civil lawsuits following Terra’s historic collapse, the fallout of which, based on recent leaks and discoveries, revealed more than just overconfidence by the CEO and founder of Terraform Labs.

Kwon Do-Hyung, more popularly known as Do Kwon in the cryptocurrency space, came like a boisterous hurricane to the cryptocurrency industry in August 2020 when he launched Terra LUNA with an initial price of $0.53, which eventually hit a record low. all-time high of $119.55. in April 2022.

But, @stablekwon (Kwon’s Twitter username), who previously claimed that he is a master of stablecoins, like a hurricane and his destructive abilities, left many investors crushed, most of them angry and helpless, after lose your life savings and be left with practically nothing. in the market.

prison-g4e7c80948_640 representational image Photo: pixabay

Kwon came up with a proposal to revive Terra from the ashes, but it turned out to be far from the mythical Phoenix: many experts have disapproved of his solution, and several others are skeptical. Authorities are still investigating the reason for Terra’s collapse, but several LUNA and UST investors in South Korea have already filed lawsuits against the CEO, along with requests to confiscate his properties.

LKB & Partners, a prominent law firm in South Korea that represents LUNA and UST investors, filed criminal and civil cases against Kwon, including fraud and a lawsuit to seize the Terraform Labs founder’s properties, the outlet reported. of Munhwa local communication.

“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,” said Kim Hyeon-Kwon, one of the partners at LKB & Partners.

Aside from that, Kwon has also been charged with tax evasion with a fine of 100 billion won (about $78.5 million) for failing to pay corporate taxes, according to South Korean news agency Naver. But he already liquidated Terraform Labs in Seoul and Busan earlier this month.

In the midst of all these legal issues, Terra’s in-house legal team resigned in the wake of the collapse. This includes general counsel Marc Goldich, chief corporate counsel Lawrence Florio and regulatory counsel Noah Axler, who left their posts last week.

It is not clear why the internal legal team resigned. LUNA was trading down 20.26% at $0.0001466 as of 23:48 ET on Wednesday, according to data from CoinMarketCap.

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