Top Korean Law Firm to Sue Terra Founder Do Kwon Over UST Collapse

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.

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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.

Read Also: Terra Founder Do Kwon Shares Plan to Rescue UST Stablecoin Peg Following Historic Crash

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.

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