Luna Founder Do Kwon Is Summoned Before South Korea Parliamentary

May 18, 2022 2:14 pm

It appears Luna founder Do Kwon, is finally going to face the music.

Do Kwon, a native of South Korea, has been summoned by the South Korean Conservative Party to appear before a Parliamentary hearing.

The South Korean Conservative Party summoned Kwon, to find some answers to the reason of the recent collapse of Luna and UST.

Besides being summoned to a Parlimnarty hearing, Kwon is also on the verge of being sued on behalf of investors everywhere.

Cointelegraph had more on the story:

The dramatic fall of Terra (LUNA) along with the algorithmic stablecoin UST has been a major talking point among the crypto industry. And now the South Korean Conservative Party has requested a parliamentary hearing on the matter.

According to a local news report, Korean exchanges responded differently to the collapse, with the National Assembly’s Political Affairs Committee on Tuesday summoning Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue. The committee’s representative, People’s Power’s Yoon Chang-Hyeon, said:

“There is a part that raises questions about the behavior of exchanges during the crash.” “Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.” He noted that “as the legislation is delayed, investors’ losses are increasing,” and “that the authorities continue to see the huge loss of investors and are helpless to protect investors.”

Crypto Briefing had a new report that stated Do Kown is even about to be sued:

The South Korean law firm LKB & Partners is reportedly preparing to sue Terraform Labs co-founder and CEO Do Kwon for fraud on behalf of investors financially harmed by Terra’s collapse last week. Terra’s disastrous implosion appears to be spilling beyond the crypto market and into South Korea’s judicial system.

According to a Wednesday report from local outlet Munhwa Ilbo, South Korean investors who suffered losses from Terra’s sudden collapse last week are planning to sue Terraform Labs co-founder and CEO Do Kwon for fraud. Per the report, the affected investors are seeking a provisional seizure of his property. Kim Hyeon-Kwon, a partner at LKB & Partners—a top South Korean law firm representing the investors—has told the local newspaper that the firm is working on filing a police report against Kwon before the Seul Metropolitan Police Agency.

“There are related investors inside the law firm, and we plan to file a complaint against CEO Kwon with the Financial Investigation Unit of the Seoul Metropolitan Police Agency,” he told Munhwa Ilbo. Per the report, the firm also plans to file a request with the Public Prosecutors’ Office of Seoul Southern District to seek provisional seizure of Kwon’s property next week.

 

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