According to the Munhwa Ilbo, hundreds of South Korean investors are involved in legal lawsuits against Do Kwon (full name Kwon Do-hyeong) and his firm Terraform Labs. Previously, as CoinCulture reported, the Terra community was against Kwon’s proposal to fork Terra to create two blockchains to make up for the crash of UST.
It’s reported that an online group of terra (LUNA) investors had initiated a “complaint process” against Kwon and Shin Hyun-seong. Shin, also the founder of the e-commerce site TMon, co-founded Terraform Labs in Singapore in 2018, but he has distanced himself from Terraform recently.
KakaoTalk Open Chat rooms of Terra/LUNA “victims.” Image: CoinCulture
A Naver Cafe space titled “The Terra/Luna Coin Victims Association” 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 alleged that LUNA is a fraud, and Kwon, who was revealed to be the co-founder of previous failed stablecoin project, has planned a liquidation since 2021. They wanted to inform authorities that Kwon and Shin had committed “fraud” and breached other financial regulations.
However, this may be the beginning of an impending deluge. There were over two dozen “Luna/Terra victims” group chats on KakaoTalk, some of which had hundreds of users discussing how much they had lost as LUNA token price plummeted and what legal actions they would take.
With over 1,500 members, one of the groups called for investors to join a legal complaint, stating that it was seeking victims to engage in the prosecution of Kwon Do-hyung and Shin Hyun-seong.
According to Munhwa Ilbo, it is pretty probable that Kwon and others would be sued concurrently by many investment groups. Lawyers from the law firm LKB & Partners are reportedly drafting and examining an application for the provisional seizure of Kwon’s property at the Financial Investigation Unit of the Seoul Metropolitan Police Agency.
However, Kwon still hopes to fight back and win the Terra community’s trust. Earlier today, the CEO had a “final” plan to introduce a new blockchain protocol without an algorithmic stablecoin to revitalise the token’s ecosystem.