Do Kwon, the creator of the stablecoin TerraUSD (UST) and its sister token Luna, is facing legal prosecution in South Korea over the collapse of the two coins that wiped out billions of dollars from investors around the world earlier this month.
The Seoul Southern District Prosecutors’ Office said Friday that it has kicked off an investigation on Terraform Labs, the organization behind the stablecoin project Terra led by Do Kwon, and assigned the case to its Financial and Securities Crime Joint Investigation Team, a special financial crimes unit brought back recently by the newly appointed justice minister Dong-hoon Han, according to local media.
The announcement came a day after five Korea-based crypto investors with combined damages of 1.4 billion won (about $1.1 million) filed criminal complaints against Kwon and his Terraform co-founder Daniel Shin over charges of fraud and other violations of financial regulations.
South Korea’s financial authorities estimated that about 280,000 users owne …
