Investigation team led by South Korean president begins to consider lawsuit against LUNA founder

Five South Korean Terra investors with losses of about KRW 1.4 billion (USD 1.1 million), represented by local law firm LKB & Partners, have filed a complaint against Terraform Labs CEO Do Kwonand co-founder Shin Hyun-sin on two charges, including fraud, local media reported.

The law firm claims that Do Kwon and Hyun-shin failed to inform investors about the shortcomings of UST and LUNA, and also deceived investors by unlimitedly expanding LUNA’s issuance.

Prosecutors are also investigating whether the Terra-based decentralized financial platform Anchor Protocol can be defined as a Ponzi scheme. LKB is still recruiting more UST and LUNA investors to join the lawsuit. Lawyers claim that they are also receiving inquiries from foreign investors.

The complaint was filed with the Joint Investigation Team for Financial and Securities Crimes at the Seoul South District Prosecutor’s Office, which was revived for this case. It was previously headed by former prosecutor and now President Yoon Seok-yeol.