Luna·Terra Incident Assigned to 'Yeouido Grim Reaper' Joint Investigation Team

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Byung-don] The Joint Investigation Unit for Financial and Securities Crimes of the Seoul Southern District Prosecutors' Office, revived after the appointment of Justice Minister Han Dong-hoon, will handle the investigation of Terraform Labs CEO Kwon Do-hyung, who has been sued and accused in connection with the collapse of Korean coins Luna and TerraUSD (UST).

The Seoul Southern District Prosecutors' Office announced on the 20th that it assigned the case of CEO Kwon, suspected of a so-called 'Ponzi scheme'?providing returns to existing investors with funds from new investors?to the Joint Investigation Unit.

CEO Kwon was sued the previous day by investors who suffered losses from the collapse of Luna and Terra, along with Terraform Labs as a corporation and co-founder Shin Hyun-sung, on charges including fraud.

The law firm LKB & Partners, representing the investors, claimed, "The acts of designing and issuing Luna and Terra, attracting investors without properly disclosing algorithmic design errors and defects, and the unlimited expansion of Luna coin issuance contrary to what was disclosed in the white paper constitute deceptive acts."

The Luna and Terra case has become the first case for the 'Yeouido Grim Reaper' Joint Investigation Unit, revived after about two years and four months.