South Korean Law Firm to File Suit Against Terraform Labs CEO, Co-Founder

Terraform Labs founder and CEO Do Kwon and co-founder Daniel Shin could soon be facing lawsuits and property seizures in the aftermath of the Terra meltdown last week.

LKB & Partners law firm told South Korean newspaper Munhwa Ilbo that it will file the lawsuit against Kwon next week. The Capital Markets and Intellectual Property law teams are also preparing an order to seize his property.

Several LKB employees impacted when Terra’s algorithmic stablecoin (UST) and LUNA governance token lost almost $40 billion in value last week will join the lawsuit.

“There are related investors inside the law firm, and we will file a complaint against Kwon at the Financial Investigation Unit of the Seoul Metropolitan Police Agency,” Kim Hyeon-Kwon, a partner at the law firm, told Munhwa Ilbo. 

Since the collapse, the company’s legal team has resigned and South Korean regulators have launched “emergency” inspections of local crypto exchanges.  

Terra revival plans

Meanwhile, Kwon has put forth several proposals in an attempt to save the Terra ecosystem. 

On Monday, he described his latest plan to fork the existing blockchain in a Twitter thread, saying he’d been taking “feedback from the community and thoughtful proposals.”

The revival plan would create a new Terra blockchain without an algorithmic stablecoin, rename the old blockchain Terra Classic and airdrop 1 billion LUNA governance tokens to every wallet that’s still staking or holding LUNA, holding UST,  or Terra app developers.

As of Wednesday morning, the seven-day voting process had kicked off, with 67 million votes having been cast in the first hour.