LKB & Partners, one of the top law firms in South Korea, has taken a step to sue Terra founder and CEO Do Kwon over the sudden collapse of TerraUSD (UST) about a week ago.
According to a local report today, the law firm will file the case against Kwon, a citizen of Korea, on behalf of ordinary investors, to the Seoul Metropolitan Police Agency.
The report says that some of LKB’s employees who are interested may also join the case since they lost a whopping sum of money in the UST collapse.
Kim Hyeon-Kwon, a partner at LKB, noted:
“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.”
Aside from filing a police complaint, LKB has also decided to file a provisional attachment order in the Public Prosecutors’ Office of Seoul Southern District, for the seizure of Kwon’s properties.
A separate report from local news agency Yonhap said LKB is also considering suing Daniel Shin, another Terra co-founder.
TerraUSD (UST) Collapse
TerraUSD (UST), the algorithmic stablecoin of the Terra ecosystem, sharply de-pegged last week to as low as $0.1, far from its target price of $1. At the time of press, the stablecoin is still trading below $0.3.
The native token of the Terra ecosystem, LUNA, also faced a similar dilemma, losing virtually all of its value. The digital token is currently trading at a fraction of a cent.
These major collapses have led to the loss of tens of billions of dollars for both retail and institutional investors.
Due to this unexpected fiasco, Korean politician Yun Chang-Hyun has reportedly called for a parliamentary hearing on UST to understand the cause of the collapse and measures to protect investors. Also, Chang-Hyun demands the presence of Kwon and local crypto exchanges at the hearing.