As the scrutiny into the collapse of LUNA and TerraUSD (UST) heats up, Do Kwon, the founder of Terra and CEO of TerraForm Labs, has reportedly made a move to obtain legal backing and advice.
CEO Do Kwon is the face of the biggest and most controversial collapse in the history of cryptocurrency. Following the massive decline in the price of Terra’s ecosystem tokens, Luna, and stablecoin UST in May, several lawsuits have been filed against the project creator and TerraForm Labs.
According to a Wednesday report by Yonhap News TV, Do Kwon has hired a legal attorney from a Korea-based law firm. The report added that he could be preparing for the prosecution’s investigation.
The report said; “According to the legal community on the 17th, CEO Kwon has appointed lawyers from a domestic law firm and is preparing for the prosecution’s investigation. He is said to have recently submitted a letter of appointment to an attorney at the Seoul Southern District Prosecutors’ Office, where he is investigating the case.”
However, this development comes after the Terra founder, Do Kwon said in an interview with Coinage, a crypto media company that there have been no charges from Korean authorities regarding the Luna and UST collapse. In his words, “we’ve never been in touch with the investigators. They’ve never charged us with anything.”
Do Kwon Legal Woes
It is worth noting that Do Kwon’s judicial woes keep increasing as a result of multiple lawsuits from different angles including class actions. Meanwhile, officials of TerraForm Labs have been banned from leaving Korea while the home of Terra’s co-founder, Daniel Shin was raided alongside Korea-based exchanges by Korean authorities.
In June, Scott+Scott Attorneys filed a class action lawsuit against various players perceived to be involved in the unforgettable Terra (LUNA) fall. The renowned litigation firm filed the case in the U.S. District Court for the Northern District of California. The lawsuit primarily targets Do Kwon, and TerraForm Labs.
Similarly, Bragar Eagel & Squire, P.C., a nationally recognized law firm with several offices in the United States, filed a class action lawsuit against Do Kwon, TerraForm Labs, and other defendants.
However, Do Kwon denies that he defrauded investors or planned the collapse of LUNA and UST as speculated by some players in the industry. He reiterated that the unusual descent of the tokens was a case of a project that didn’t work out.