Thursday, September 29, 2022

Breaking: Terra’s Co-Founder Do Kwon To Be Charged To Court In South Korea

In the wake of the Terra blockchain’s crash, an aggrieved group of South Korean investors has moved to take legal action against the platform’s co-founder Do Kwon.

Do Kwon faces fresh lawsuit over Terra crash

According to a report from local media house Munhwa, LUNA and UST holders numbering over 1500 individuals, have already teamed up, looking to bring Kwon to book. The Munhwa report also claims that the group which calls itself the “Terra Luna Coin Victims,” plans to take legal action against Terraform Labs.

In line with their plan, the group has employed the services of a law firm LKB & Partners. This law firm will act as the legal representative of the group. Kwon however, will be charged with civil and criminal liabilities pertaining to the crash that has thrown LUNA holders into the deep, albeit in large numbers.

As it turns out, however, some of the employees at LKB & Partners also recorded losses from the Terra crash. So, maybe the lawsuit is even more personal than it appears. 

Additionally, the group is reportedly also making plans to lodge an official complaint against Kwon at the police department of Seoul. Whereas, further reports also suggest that the South Korean Government is considering summoning Kwon to testify in a hearing.

What’s next for Terra?

At the moment, Kwon has proposed a way out and top Terra developers seem to agree. Currently, the popular opinion among top Terra developers is to hard fork the blockchain into a new version, with a new LUNA token. The proposal also includes distributing the new LUNA token to the old holders via airdrops.

However, the community immediately kicked against the proposal. A preliminary vote on Terra’s governance forum at least proves so with more than 90% voting against the plan to hard fork. 

Meanwhile, some have opined that Kwon should burn the reserves to at least, bring back some value to LUNA and the UST.

Last week, a Terra investor also reportedly attempted to reach Kwon at his home.

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