Investors in Luna and Terra sue the CEO and founder of the Southern District Prosecutors’ Office… Is this the first case of the resurrected Hapdan?

Investors who suffered losses from the collapse of the Korean virtual currency Luna and Terra USD took legal action against Kwon Do-hyung, CEO of Terraform Labs, a coin issuer.

On the 19th, LKB & Partners, a law firm that has been recruiting investors who suffered damage, reported to the Seoul Southern District Prosecutors’ Office on the 19th that CEO Kwon and Terraform Labs co-founder Hyun-seong Shin violated the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Regulations on Similar Receipts. accused and sued.

LKB claimed that CEO Kwon and others did not properly notify design errors or flaws in the algorithm while issuing Luna/Tera coins, and deceived victims by increasing the issuance of Luna Coins to an unlimited extent, contrary to what was announced in white papers. He also pointed out that attracting tens of trillions of won in investment, saying that it guarantees a return of 19.4% per annum, is a similar act of receiving.

In filing the complaint, LKB said, “The joint financial and securities crime investigation team (collective means) called ‘Yeouido Grim Reaper’ in the hope that the investigation will be conducted fairly and justly so that the accused will be severely punished and the victims will be able to recover their damage promptly. ) to file a complaint.”

The coalition unit, which has been investigating large-scale financial crimes such as stock price manipulation and price manipulation, was abolished in January 2020, but was re-established at the Seoul Southern District Prosecutors’ Office shortly after Han Dong-hoon took office as Minister of Justice. There are also observations that the Luna-Terra coin crash could be the first investigation target of the revived coalition team.

CEO Kwon, a former Apple engineer, established Terraform Labs, a coin issuer, in 2018 and issued Luna and Terra coins. Terra coin ranked 3rd in market capitalization among stablecoins, and Luna coin also ranked 10th in virtual currency market capitalization, but the value fell by more than 99% from its peak on the 12th, giving a big shock to the coin market. Binance, the world’s largest virtual currency exchange, and Upbit and Bithumb, the domestic exchanges, have decided to delist the Luna Coin.