A South Korean law firm is representing investors who lost millions of dollars due to last month’s $40 billion crash of algorithmic stablecoin TerraUSD and its sister token Luna.
Founders of Terraform Labs, Do Kwon and Daniel Shin, who created Luna, have become targets of the crypto industry’s ire after the stablecoin lost its peg to the dollar. Its stabilization mechanism failed and caused Luna to undergo hyperinflation, reducing its value to virtually zero.
Seoul-based LKB & Partners told local media it will be filing a complaint against the Terraform founders, bringing two charges, including fraud. The firm also told local newspaper Munhwa Ilbo that it filed an attachment order to the Public Prosecutors’ Office of the Seoul Southern District to seize Kwon’s properties.
The claimants are believed to include LKB & Partners lawyers themselves. The firm did not respond to a request for comment.
More potential lawsuits may be on the way. Investors who suffered losses from the Luna crash have joined movements against Kwon and Shin. A community called LUNAscam, hosted on the South Korean online platform Naver, has gathered more than 1,700 members since it was created in mid-May.
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