A group of South Korean investors appears to have filed a lawsuit against Terra founder Do Kwon over the blockchain crash.

According to local media reports, several LUNA and UST holders have decided to hold Kwon responsible for the price’s recent collapse. They are represented by law firm LKB & Partners, whose employees are reportedly also LUNA holders.

The lawsuit holds Kwon responsible for civil and criminal liability in the Terra crash, according to a report by South Korean publication Munhwa. A police charge against Kwon will also be filed in Seoul.

The South Korean government is also reportedly considering calling on Kwon to testify at a hearing.

The Terra blockchain saw its value plummet to just $1 billion, from more than $40 billion, in the first two weeks of March. The focus is now on Kwon’s next steps.

South Korean Traders Reportedly Mobilize

The Munhwa report also suggests that several Terra holders have come together to form an online group called “Terra Luna Coin Victims”. The group has more than 1,500 members and is likely to take further legal action against Terrform Labs.

The estimated damage to investor stocks from the Terra debacle is about $40 billion dollars, consisting largely of price crashes in LUNA and UST.

Some investors also saw their interests locked up indefinitely in Anchor Protocol, Terra’s largest DeFi platform. The online backlash against Kwon was huge because of the crash.

Last week, a Terra investor also reportedly attempted to reach Kwon’s home.

Where is Terra going now?

Currently, the general consensus among the top Terra developers is to hard fork the blockchain into a new version, with a new LUNA token that will be distributed to legacy holders.

But the community has widely opposed such a move and has instead called on Kwon to burn the current reserves and help restore the value of LUNA and UST.

A preliminary vote on Terra’s board forums shows that more than 90% of holders are against the plan to hard fork. The official vote on the fork has yet to be opened, as of press time.

With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can play him video games or watch Seinfeld reruns. You can reach him at [email¬†protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.

This post Terra founder Do Kwon faces lawsuit in South Korea

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