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One of the leading Korean law firms LKB & Partners plans to sue the creator of the Terra ecosystem Do Kwon
One of the leading law firms in South Korea, LKB & Partners, will sue Terraform Labs founder and CEO Do Kwon after the collapse of the terraUSD (UST) stablecoin. This is written by the local edition of Munhwa Ilbo with reference to representatives of the company.
It is reported that the legal giant will file a lawsuit against Kwon on behalf of ordinary investors in the Seoul Metropolitan Police Department. It is also alleged that some of the employees of LKB & Partners may also join the lawsuit, since they lost money as a result of the collapse of the UST.
“There are related investors in the law firm, and we will file a complaint against Kwon with the Financial Investigation Department of the Seoul Metropolitan Police Department,” said Kim Hyun-Kwon, a partner at the law firm.
Lawyers at LKB & Partners also decided to request a preliminary warrant to seize Kwon’s property from the Seoul Southern District Prosecutor’s Office. In addition to lawsuits against Kwon, lawyers are considering litigation against Daniel Sheen, the co-founder of Terra.
Meanwhile, South Korean authorities want to summon Do Kwon and representatives of local crypto exchanges to testify.
During the meeting, the authorities want to know the cause of the incident and what measures have been taken to protect investors. The timing of the hearing is not yet known. Representatives of Coinone, Korbit, Gopax, Bithumb and Upbit are expected to be called to the hearing. All trading platforms have curtailed cryptocurrency trading of the Terra ecosystem, but in different time intervals.
Recall that in early May, the UST stablecoin lost its peg to the US dollar. What exactly caused the incident remains unclear. The UST/USD quotes fell from $1 to $0.12. The native token of the Terra ecosystem also came under attack, losing 100% in the LUNA/USD pair over the past week.
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