Do Kwon, CEO of Terraform Labs, has been in the spotlight recently. The platform’s native token, LUNA, and stablecoin, UST, had a catastrophe. Legal experts in the US said Terra’s CEO will likely avoid punishment. They said he should only worry about widespread LUNA lawsuits.
Investors want Do Kwon investigated
Traders inside and outside Do Kwon, South Korea, have called for prosecution since the incident. Investors suspect the CEO is involved. Although investigations are ongoing, they have done little to appease investors who suffered losses.
A renowned legal expert who has served in public office told CNBC that Terra’s CEO will avoid U.S. law. He said prosecutors must prove without a doubt that he was involved. The lawyer said this isn’t a criminal matter where witnesses incriminate Do Kwon.
Terra may be subjected to further civil lawsuits.
Because the process is usually cumbersome, the legal executive stated that the law cannot show the motive that is imagined in people’s brains. He also discussed searching through a pile of records for proof, speaking with investors and analysts, as well as other parties interested in the case, and moving between different courtrooms and legal battles. Prosecutors must also consider the defendant’s mental state because they will only be able to access text messages, paperwork, and other physical materials, according to a prosecutor.
A case concerning the collecting of blood samples was mentioned by the former US public expert. The defendant stated in the case that they were using their machines to run blood samples while an external machine was used for the process. Do Kwon could face civil actions involving class action lawsuits from unhappy investors. Several lawsuits have been launched in South Korea by disgruntled investors, with the majority demanding the government to censure and probe Do Kwon and his company. Terra, on the other hand, has continuing to airdrop new LUNA tokens to pay holders of the old coin.
