Within the aftermath of Terra’s collapse, co-founder Do Kwon now faces authorized stress from affected Korean traders. They’ve filed each felony and civil lawsuits, alongside an order to grab Kwon’s property.
Hassle With the Regulation
Based on the Korean information outlet Munhwa, traders in each UST and LUNA filed with the court docket to grab Kwon’s property this week, whereas additionally suing for fraud. They’ll be represented by the authorized agency RKB & Companions, from which 6 attorneys are already reviewing a criticism in opposition to the CEO.
“There are associated traders contained in the regulation agency, and we plan to file a criticism in opposition to CEO Kwon on the Monetary Investigation Unit of the Seoul Metropolitan Police Company,” mentioned Kim Hyeon-kwon, a accomplice at LKB & Companions.
Kwon grew to become a goal of the crypto business’s ire after the UST stablecoin misplaced its peg to the greenback. Its stabilization mechanism additionally prompted Terra’s governance token LUNA to bear hyperinflation, lowering its worth to just about zero. Many giant traders within the protocol – such because the UK Youtuber KSI – watched their multi-million greenback LUNA positions crumble to nothing within the aftermath.
Because of this, Kwon could also be summoned to seem earlier than the South Korean authorities to testify on every cryptocurrency’s collapse. The nationwide politician Yun Chang-Hyun has requested that Kwon and different executives of native crypto exchanges clarify their actions whereas the de-peg was happening.
That’s not all. Subsequent week, a brand new Korean group known as “Victims of Luna, UST cash” will file a lawsuit in opposition to each co-founder Do Kwon and Shin Hyun-Seong for fraud and unlawful fundraising. Over 1500 individuals are members of the group.
Neither lawsuit has reached court docket but, however seemingly will quickly.
The Vote to Recreate Terra
Do Kwon put forth a proposal on Monday suggesting that the Terra community fork from its present chain, and begin once more with a special cryptocurrency. As of Wednesday, the vote has gone live.
About 20% of the votes are in to date, with 90% of respondents voting “sure”. Ought to it happen, the outdated devalued LUNA tokens will grow to be “LUNC” (aka LUNA Basic) and the brand new LUNA provide will begin at 1 billion tokens.
Not everyone seems to be glad with the concept, nonetheless. Binance CEO Changpeng Zhao stated on Saturday that forking the chain “received’t work”.
“Forking doesn’t give the brand new fork any worth,” he mentioned. “That’s wishful pondering.”
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