Terra faces litigation from South Korean investors over failed UST investment

Terra law firm is applying to the Seoul Metropolitan Police Agency to seize all Do Kwon's properties in the country. 

Terra faces litigation from South Korean investors over failed UST investment

With the abrupt crash of Terra's UST last week, a popular South Korea-based law firm, LKB & Partners is set to SUE to Do Kwon on behalf of South Koreans who invested in the asset. 

The law firm is applying to the Seoul Metropolitan Police Agency to seize all Do Kwon's properties in the country. 

Interestingly the firm states it represents all Koreans who have lost money to the "Ponzi" scheme LKB is yet to decide whether it will be suing Terraform co-founder Daniel Shin. 

South Korea's new minister for the Department of Justice has vowed to take on the investigation of the Terra-Luna event as his first official task. Plans are already in motion for the minister to create a financial crime investigation team to oversee the inquiry.

Yun Chang-Hyun has reportedly called for a parliament hearing on the crash of Terra's UST.

Chang-Hyun said:

We should bring related exchange officials, including CEO Do Kwon of Terra, which has become a recent problem, to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.

The US has also used the opportunity to call for stricter regulations surrounding the crypto space. 

On LinkedIn pages of Mar Goldich, who served as the general counsel alongside others like chief corporate counsel Lawrence Florio, and regulatory counsel Noah Axier show that they have left the company. 

While the reason they left the company remains clouded, many within the crypto community have attributed it to the crash of the ecosystem. 

The crypto industry witnessed a massive price and Terra's UST and LUNA value plummeted to new lows pulling the overall market along with it. 

A spokesperson for the company said:

The past week has been challenging for Terraform Labs, and a small number of team members resigned in recent days. The vast majority of team members remain steadfastly committed to carrying out the project’s mission. Terra is more than $UST, with an incredibly passionate community and a clear vision of how to rebuild. Our focus is now on executing our plan to revive the Terra ecosystem.

Read: UST and LUNA Crash: G7 Countries to Discuss Crypto Regulations