South Korea to sue Terraform Labs CEO over UST collapse

One of South Korea’s leading law firms, LKB & Partners, is preparing to file a lawsuit against Terraform Labs CEO Do Kwon. Local media report, citing the company’s statement.

LKB noted that they are acting on behalf of ordinary investors. Several firm employees who lost money in the collapse of the algorithmic stablecoin TerraUSD (UST) may join the suit.

Representatives of LKB also plan to file a complaint with the Financial Investigations Division of the Seoul Metropolitan Police Agency and to seek the seizure of Do Kwon’s assets.

According to Yonhap, LKB lawyers are considering filing a suit against the project’s founder, Daniel Shin.

Prices of UST and LUNA began to fall on May 10. This occurred amid outflows from the Anchor protocol as deposit yields fell to 17.87%. As a result, on May 8, the stablecoin briefly lost its peg to the dollar.

The decline continued on May 11, with LUNA, used to mint the algorithmic stablecoin, plunging to $0.30.

In May, media reported the dismissal of three Terraform Labs’ legal department staff following the UST and LUNA collapse.

Earlier it was reported that Yuna Chan-Hen, a representative of the South Korean People Power Party, called for holding parliamentary hearings with Do Kwon.

Follow ForkLog news on Telegram: ForkLog Feed — full news feed, ForkLog — the most important news, infographics and opinions.