Terra’s Do Kwon drowns in legal waters as South Korean law firm issues lawsuit

Sahana Kiran
Source – Unsplash

South Korea seems to be actively investigating Terra’s downfall. The regulators of the country now have their eyes on the crypto industry and are yearning to spruce up the regulations surrounding the crypto-verse. Terraform Labs and its founder Do Kwon has been finding ways to revive the entire network while keeping regulators in mind. Meanwhile, rumors about the firm being slapped with a lawsuit by a South Korean law firm began surfacing.

South Korea’s prominent law firm, LKB & Partners will reportedly be suing Terra’s Do Kwon representing Korea’s investors. The case is likely to stand well in the country considering Kwon is a Korean national. In addition to this, LKB is also looking to sue Terra’s other co-founder Daniel Shin.

The lawsuit has managed to garner support from the employees of LKB itself as they have lost money themselves. Kim Hyeon-Kwon, a partner at LKB told the newspaper agency Munhwa Ilbo,

“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.”

Alongside this, LKB will be filing a provisional attachment that would result in the confiscation of Kwon’s property in the Public Prosecutors’ Office of Seoul Southern District.

This lawsuit comes in an untimely manner as most of them from the legal team of the Terraform Labs resigned following UST’s downfall.

BNB Chain extends support to Terra

Binance seems to have developed a soft corner towards Terra. BNB Chain will reportedly deliver backing for projects that intend to migrate from the Terra blockchain.

Gwendolyn Regina, Investment Director at BNB Chain elaborated on the same and said,

“It is a difficult time for many in the market, and we at BNB Chain want to welcome our fellow members of the wider crypto community into the BNB Chain ecosystem. We know you want to build, and we’ve put in place a solid support infrastructure to help you do so.