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A group of South Korean investors appears to have filed a court case against Terra founder Do Kwon over the blockchain’s crash.
Local media reports suggest that several LUNA and UST holders have decided to hold Kwon accountable for the recent price collapse. They are being represented by law firm LKB & Partners, whose employees are also reportedly among LUNA holders.
The lawsuit holds Kwon accountable for civil and criminal liability in the Terra crash, according to a report from South Korean publication Munhwa. A police complaint against Kwon will also be filed in Seoul.
The South Korean Government is also reportedly considering summoning Kwon to testify in a hearing.
The Terra blockchain saw its value plummet to barely $1 billion, from over $40 billion, in the first two weeks of March. 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 a an online group called “Terra Luna Coin Victims.” The group has over 1500 members, and is likely to seek more legal action against Terrform Labs.
The estimated damage to investor holdings from the Terra debacle is at about $40 billion dollars, consisting largely of price crashes in LUNA and UST.
Some investors also saw their holdings indefinitely locked into Anchor Protocol, Terra’s largest DeFi platform. The online backlash against Kwon has been immense through the crash.
Last week, a Terra investor also reportedly attempted to reach Kwon at his home.
Where will Terra go next?
Currently, the general consensus among top Terra developers is to hard fork the blockchain into a new version, with a new LUNA token that will be distributed to old holders.
But the community is widely against such a move, and has instead called on Kwon to burn current reserves and help restore some value to LUNA and UST.
A preliminary vote on Terra’s governance forums shows that over 90% of holders are against the plan to hard fork. Official voting on the fork is yet to open, as of press time.