Top Korean crypto firm decides to sue Terra founder

Terraform Labs founder Do Kwon is near to face another bad situation because of a new complaint for its downfall of the Terra ecosystem.

Terraform Labs is a developer team behind the Terra network. In the last week, Terra’s native coins UST & Luna collapsed because of the panic sale under the critical market situation. The project team behind Terra is currently working to revive its Luna coin via the Hardfork strategy.

On 18 May, a South Korean Media reported that LKB & Partners, one of the top law firms in South Korea, planned to sue Do Kwon, CEO and founder of Terraform Labs. 

LKB will file a complaint against Kwon on behalf of the financial problems that ordinary Korean crypto investors faced because of the sudden collapse of the Terra’ Luna and UST coin. Some ordinary crypto Investors filed a complaint against Terra founder to the Seoul Metropolitan Police Agency. 

Report stated:

“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,” Kim Hyeon-Kwon, a partner at LKB, told Munhwa Ilbo

Besides the police complaint, LKB will legally force the agencies to seize the public properties of Terra’s founder.

A separate report noted that LKB will not only file a complaint against Kwon but also it will drag Daniel Shin, who is another Terra co-founder.

UST stable coin

Dollar pegged stable coin UST was integrated with Luna coin to maintain stability in the price of UST stablecoin by $1. But under the very high panic sell situation, it collapsed to almost 10 cents. 

At the time of writing this article, the current value of UST is $0.1, which is 90% low than its pegged $1 value.

Last day, the block reported that the legal team behind the Terra project team left its support, to defend itself from the recent critical situation.

Read also: Coinbase slow downs Its hiring spree because of the critical market situation