In the wake of last week’s Terra meltdown, founder and CEO of Terraform Labs Do Kwon and co-founder Daniel Shin could soon be sued and have their property taken away.
The law firm LKB & Partners told the South Korean newspaper Munhwa Ilbo that the lawsuit against Kwon will be filed next week. The teams of lawyers who work on Capital Markets and Intellectual Property are also making plans to seize his property.
Last week, Terra’s algorithmic stablecoin (UST) and LUNA governance token lost almost $40 billion in value. Several LKB employees who were affected by this will join the lawsuit.
Kim Hyeon-Kwon, a partner at the law firm, told Munhwa Ilbo, “There are related investors inside the law firm, and we will file a complaint against Kwon with the Financial Investigation Unit of the Seoul Metropolitan Police Agency.”
Since the collapse, the company’s legal team has quit, and South Korean regulators have started “emergency” inspections of local crypto exchanges.
Terra revival plans
In the meantime, Kwon has come up with a number of ideas to save the Terra ecosystem.
In a Twitter thread on Monday, he talked about his most recent plan to split the existing blockchain. He said he had been listening to “feedback from the community and thoughtful proposals.”
6/ The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – $LUNA), and the old chain be called “Terra Classic” (token Luna Classic – $LUNC). Both chains will coexist.
— Do Kwon 🌕 (@stablekwon) May 16, 2022
The plan to bring Terra back would make a new blockchain without an algorithmic stableoin. The old blockchain would be renamed Terra Classic, and 1 billion LUNA governance tokens would be sent to every wallet that is still staking or holding LUNA, UST, or Terra app developers.
The seven-day voting process started Wednesday morning, and 67 million votes were cast in the first hour.
