Luna·Terra Investors File Additional Lawsuit Against CEO Kwon Do-hyung... "76 Victims"

On the morning of the 19th, the recent plummeting price of Luna coin was displayed at the Bithumb Customer Center in Seocho-gu, Seoul. Photo by Yonhap News

[Asia Economy Reporter Moon Hyewon] Investors who suffered losses from the crash of the Korean cryptocurrency Luna and Terra have filed additional complaints with the prosecution against Kwon Do-hyung, CEO of Terraform Labs, and others.

The Naver cafe "Terra Luna Coin Victims' Group" announced on the 27th through a notice that they have filed a complaint against CEO Kwon and co-founder Shin Hyun-sung at the Seoul Southern District Prosecutors' Office.

A total of 76 investors participated in this collective complaint and petition, with total losses amounting to 6.7 billion KRW. Individual losses are reported to range from a minimum of 500,000 KRW to a maximum of 800 million KRW.

The cafe operator stated, "We have submitted over 300 pages of reference evidence materials to the prosecution, examining the causal relationship of the incident."

Previously, the law firm LKB & Partners also filed a complaint with the prosecution on behalf of five related investors against CEO Kwon and Mr. Shin for violations of the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act on the Regulation of Conducting Fund-Raising Business Without Permission, among other charges. This case has been assigned to the Financial and Securities Crime Joint Investigation Team at the Seoul Southern District Prosecutors' Office.

The Luna-Terra incident refers to the chain crash event of Terraform Labs' coins, whose market capitalization once exceeded 50 trillion KRW.

Terraform Labs had promoted an annual interest rate of 20%, but earlier this month, as Terra's price fell below 1 dollar and the pegging system became unstable, Luna's price also plummeted, causing most of the market capitalization to vanish within a week. Luna is a cryptocurrency that supports the pegging (value stabilization) of Terraform Labs' stablecoin Terra to the US dollar.

According to financial authorities' investigations, the number of Luna coin investors is estimated to be about 280,000.

This content was produced with the assistance of AI translation services.