The founder of Terra (Crypto: LUNA), Do Kwon, is being sued by Korean legal firm LKB & Partners as of May 22 as numerous other investors prepare legal challenges against Terra.
What Happened: According to The Block, the legal team backed by investors seek to seize and capture Kwon’s property. As a result of the recent de-pegging of UST and LUNA, $60 billion in investor funds were lost.
Consequently, investors have been seeking out their losses from the founders, now through legal pursuits. The lawsuit endeavours to bring Kwon in front of the South Korean government to testify to his involvement in the occurrence of the de-peg.
Why It's Important: Historically, across all major stock crashes, investors have had the right to accountability for what happened to their funds and how. The nascent and unregulated nature of the cryptocurrency markets sometimes may protect founders from complete accountability for their actions.
In light of the Black Swan event of Terra’s crash, there will be fervent efforts by retail investors to increase the accountability borne by project founders.
