At least five South Korean investors of stablecoin TerraUSD and its once bullish sister coin Luna have sued the co-founders of Terraform Labs, the company behind the troubled cryptocurrencies. Complaints have been filed with the Seoul Southern District Prosecutors Office against the cryptocurrency firm’s co-founder and CEO Do Kwon and co-founder Daniel Shin. Do and Shin were accused of fraud and collecting money from investors without obtaining proper authorisation or filing necessary reports. Financial Services Commission Chairman Koh Seung-beom said the troubled cryptocurrencies wiped out almost USD38bn from investors’ balance sheets in a week with 280,000 Korean investors seeing hefty losses. FSC data showed that some 100,000 retail investors in South Korea each held over KRW100m (USD78,000) in deposits at local cryptocurrency exchanges as of end-2021.
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