Another headache appears to be incoming for Do Kwon (full name Kwon Do-hyeong) and his company Terraform Labs – with investors in South Korea ready to wage a legal battle against the CEO.
Munhwa Ilbo reported that as many as three separate legal cases are now being mounted – each involving hundred of South Korean investors.
The newspaper reported that an online group of terra (LUNA) investors had launched a legal “complaint process” against both Kwon and Shin Hyun-seong, Kwon’s Co-founder at Terraform Labs. Shin, who is also the founder of the e-commerce platform TMon, co-founded Terraform Labs in 2018 in Singapore with Kwon – but has moved to distance himself from Terraform in recent days.
A Naver Cafe space named “The Terra/Luna Coin Victims Association” (literal translation) has more than 1,500 members, with a pinned comment reading:
“Next week, we will submit a complaint to the Seoul Southern District Prosecutors’ Office against the co-founders Kwon Do-hyeong and Shin Hyun-seong.”
The cafe operators go on to allege that LUNA is a scam, and that Kwon had been planning a liquidation since 2021.
The authors added that they intended to tell prosecutors that Kwon and Shin had committed “fraud” and violated other financial laws.
This may just be the start of a coming deluge, however. Cryptonews.com saw around two dozen “Luna/Terra victims” group chats on the chat app KakaoTalk’s open chat portal, some of which had hundreds of members – with some of them speaking variously about the amount of money they had lost on their investments as well as their legal options.
One of the groups – with upward of 1,5000 members – posted an open invitation for investors to join a legal suit, claiming it was “looking for victims to participate in the prosecution of Kwon Do-hyung and Shin Hyun-seong.”
Munhwa Ilbo reported that it was “highly likely that Kwon and others will be sued simultaneously by several groups of investors.”
Lawyers also appear to be on the warpath. The same media outlet reported that “six lawyers” from the legal firm LKB & Partners are “writing and reviewing an application for the provisional seizure of property” belonging to Kwon at the Financial Investigation Unit of the Seoul Metropolitan Police Agency.
Kwon, however, is still hoping to fight back and regain the trust of the Terra community: Earlier today, Cryptonews.com reported that the CEO plans to revive the token’s ecosystem with a “final” plan to launch a new blockchain protocol without an algorithmic stablecoin.
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