South Korean investors that have been financially damaged by the TerraUSD (UST) and LUNA fiasco are reportedly seeking legal action and applying for property seizure from Terraform Labs CEO Kwon Do-hyung.
See related article: S.Korean lawmaker proposes summoning Do Kwon to the National Assembly
Fast facts
- Local law firm LKB & Partners has made a tentative decision to file the complaint and the request for seizure of properties to the financial crime investigation team under the Seoul Metropolitan Police Agency or the Seoul Southern District Prosecutors’ Office, according to Yonhap.
- The law firm is reportedly reviewing a lawsuit against Shin Hyun-seung, co-founder of Terraform Labs, who claims to have departed the project in 2020.
- Chai Corporation, a South Korean payments firm where Shin serves as CEO, notified users on its website that it is not associated with Terraform Labs and related cryptocurrencies.
- There are around 280,000 investors holding about 70 billion LUNA tokens in South Korea, according to the Financial Services Commission (FSC).
- Over 2,100 internet users have signed up to a South Korean online community launched May 13 for Terra-LUNA investors that have suffered losses.
- On May 15, an administrator from the online community started recruiting investors to join a class action suit against Terra’s two co-founders.
See related article: Do Kwon’s wife seeks police protection