Lawsuits in South Korea from UST and LUNA investors.

It was only a matter of time before lawsuits would start occurring from the incredible collapse inside the Luna blockchain network. A total of 40 billion USD wiped off the map in a matter of days if not hours in real time, while most retail investors had there coins locked up preventing from selling while the LUNA treasury dumped the almost entire 80,394 BTC to save the UST dollar peg price.

The criminal and civil lawsuits are calling for South Korean authorities to seize all of Kwons assets coming from investors in the project and there are already approximately 6 lawyers reviewing complaints against the CEO. Also Do Kwon has been summoned by the South Korean government to testify on the cryptocurrencies collapse with local exchange executives explaining all actions as the process unfolded.

Also separate reports show Kwon has a personal tax bill of 100 billion won ( $78 million) and the Luna Guard Foundation (LFG) is about to be with a similar fine after Korean tax authorities found legal entities of LFG operating out of domestic companies and residents within South Korea. Korea doesn’t have zero knowledge on blockchain making it much clearer to authorities on understanding how this all really did play out if Kwon testifies as well.

The last effort to save the blockchain Kwon now has put forth a proposal to fork the Terra network and start again with a different cryptocurrency. People are voting yes within the network to have any chance of recouping there loses with focusing on reimbursing the smaller holders first. The issue still remaining is the trust for the network and the people running it has been destroyed so when it comes to investments on VCs, blockchain devs and just regular investors it will be hard to justify investing after what has already been lost.