Terra Do Kuon creator faces South Korean lawsuit – TechCrunch

To Kuonthe creator of the stable coin TerraUSD (UST) and its sister token Luna, is facing a lawsuit in South Korea over the collapse of two coins that wiped out billions of dollars from investors around the world earlier this month.

Southern District Prosecutor’s Office in Seoul said It’s Friday has started an investigation by Terraform Labs, the organization behind the Terra stable coin project led by Do Kuon, and appointed the case of his Joint Investigation Team on Financial Crimes and Securities Crimes, a special financial crime unit recently returned by newly appointed Justice Minister Dong Hong Han, according to local media.

The announcement comes a day after five Korean-based crypto investors with combined damages of 1.4 billion won (about $ 1.1 million) filed criminal charges against Kwon and Terraform co-founder Daniel Shin on charges of fraud and other financial irregularities. .

South Korean financial authorities rated that about 280,000 consumers own a total of 70 billion moons in Korea.

“Designing and issuing Luna and Terra to attract investors, but failing to be properly informed of the shortcomings and unrestricted expansion of Luna’s issuance is a fraud for investors,” said a representative of LKB & Partners, the law firm hired by the five investors charging Terraform Labs.

It’s up to Kuon too according to reports facing a tax fine of 100 billion won ($ 78 million) for evading corporate tax and income tax payments.

The UST, once one of the most promising stable coins, lost $ 1 last week and has fallen to $ 0.079 since then. Instead of being backed by fiat money or real-life assets like some other stable coins, the value of the UST is maintained by “burning” its sister token Luna. Luna’s price has fallen by more than 99% since last week.

The block for the first time, Terraform Labs’ domestic legal team has reportedly resigned following the collapse of UST and Luna.

Terraform Labs is registered in Singapore but is registered to operate as Terraform Labs Korea in South Korea