Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
The firm will represent a group of LUNA and UST investors, who allege fraud and seek to have Kwon’s property seized.
A group of investors from Earth (LUNA) of South Korea has joined together to file a class-action lawsuit against the CEO and founder of Terraform Labs Do Kwon, following the collapse of the stablecoin USD Land (UST).
LKB & Partners one of South Korea’s leading law firms, revealed to local news media that it is preparing to file legal action against Kwon after the sudden collapse of UST and LUNA last week. The firm will file the case against Kwon, a South Korean citizen whose real name is Kwon Do-Hyeong, on behalf of common investors.
Kim Hyeon-Kwon, a partner at the law firm, told local newspaper Munhwa Ilbo that the firm is working to file a police report against Kwon with the Seoul Metropolitan Police Agency.
There are related investors within the law firm, and we will file a complaint against Kwon with the Financial Investigation Unit of the Seoul Metropolitan Police Agency.
According to the report, the firm also plans to file an application next week with the Seoul Southern District Public Prosecutor’s Office to to pursue the provisional seizure of Kwon’s property . Meanwhile, some of LKB’s employees may also join the case, as they lost money after UST’s collapse, the report adds.
Kwon faces legal action
The project’s top representative may not be the only one to face legal action against him. According to a separate report in Yonhap which was picked up byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.the LKB agency is also considering suing Daniel Shin (Shin Hyun Sung ) another co-founder of Earth who has withdrawn from the project following recent events.
“ Next week, I will file a complaint and denunciation against co-founders Kwon Do-hyung and Shin Hyun-seong with the Seoul Southern District Public Prosecutor’s Office. “ LKB’s lawyer said, indicating that they will allege fraud.
The most recent plunge in Earth has caused losses of tens of billions of dollars for investors around the world. In South Korea alone, local regulators estimate that between 200,000 and 280,000 investors were affected by the collapse of LUNA and UST, according to a previous report by Newsis .
In response to these events, South Korean regulators this week launched investigations with “ emergency inspections “ among local cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchanges. Korean politician Yun Chang-Hyun also request a parliamentary hearing on UST to understand the cause of the collapse and measures to protect investors. Kwon is expected to attend that meeting.
Investors in other parts of the world have also expressed their dissatisfaction about the facts and have gone to the authorities to complain about Earth . In Singapore, a citizen has filed a police report. According toCryptoNewswho cited a copy of the document published in Reddit the lawsuit alleges that LUNA is a “ estafa ponzi colapsada “which affected 1,000 Singaporeans.
Terra’s collapse and rescue plans
The ecosystem of Earth suddenly imploded last week after the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. UST, which is expected to maintain a stable price of USD $1, lost its parity and fell to a few cents on the dollar. The event had a negative impact on LUNA, the token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. brother of the project, which plummeted from $80 to zero in a matter of a few days.
The native cryptocurrencies of Earth have failed to recover despite the many efforts of its developers to save the project. This Wednesday, a vote for Kwon’s proposal to fork the blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. Earth and turn the page with UST; although the community seems to be generally opposed to these plans.
LUNA is trading at USD $0.0001739 and UST is trading at 10 cents, according to data from CoinMarketCap by the time of editing.
- Terraform Labs legal team left the company after UST and LUNA token issues
- Do Kwon announces final vote to bifurcate Terra, even as 92% of community rejected plan
- Investor who lost $2 million in Terra broke into Do Kwon founder’s home
Article by Hannah Estefania Perez / DiarioBitcoin
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