Luna Delisted on Upbit Today... Global Investors File Lawsuits Against Kwon Do-hyung

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Worldwide investors are filing lawsuits against Kwon Do-hyung, CEO of Terraform Labs, the creator of the domestic coins Luna and TerraUSD (UST), which became worthless in just over a week. Since Terra was ranked among the top 10 global cryptocurrencies, the number of lawsuits is expected to increase further.

According to the cryptocurrency industry on the 20th, the Seoul Southern District Prosecutors' Office assigned the case of Kwon Do-hyung, CEO of Terraform Labs, who was sued and accused due to the Terra crash, to the newly established Joint Financial Securities Crime Investigation Unit (Joint Investigation Unit) under the newly appointed Minister of Justice Han Dong-hoon.

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

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 expanding the issuance of Luna coins infinitely contrary to what was disclosed in the white paper constitute deceptive acts."

Earlier, in Singapore, where Terraform Labs' headquarters are located, an individual investor already filed a fraud complaint against CEO Kwon Do-hyung.

A user of Reddit, a major online community in the United States, posted on the 17th requesting a complaint and police investigation against CEO Kwon. The user, presumed to be a Singaporean investor, emphasized, "At least 1,000 people in Singapore alone lost money due to Luna's fraud." He called Luna a "Ponzi scheme" and stated, "As far as I know, he (Kwon Do-hyung) is still a billionaire," adding, "He should at least return the money earned from Luna to the investors."

Considering that Luna was traded in more than 80 countries worldwide, the number of countries filing lawsuits is expected to increase. According to CoinMarketCap, a global cryptocurrency market tracking site, as of 11 a.m. that day, Luna (LUNA) was traded on 84 virtual asset exchanges.

Meanwhile, Upbit, the largest cryptocurrency exchange in Korea, delisted Luna from the Bitcoin market, where it could only be traded against Bitcoin, starting at 12 noon that day. After trading support ends, previously requested sell and buy orders will be canceled collectively. However, withdrawals will still be possible for 30 days even after trading support ends.