The victims of the Luna Incident have filed a class action lawsuit against Terraform Labs CEO Dohyung Kwon. However, it seems unlikely to achieve monetary relief for the victims, especially since proving Kwon to be guilty of fraud and violation of the Act on the Regulation of Conducting Fund-raising Business Without Permission would be difficult, based on their current grounds for filing. Partner attorney Ohoon Kwon explained that “similar deposit-taking is defined as an act of promising guaranteed principal repayment and guaranteed yield rate without official registration or permission. As the court does not recognize virtual assets as capital invested, for they are not considered as real money, similar deposit-taking cannot be applied to this case.” He added that “although the structure was vulnerable to rapid collapse once the market loses trust on the collateral, Terra and Luna ecosystem did exist. Therefore, there can be different interpretations on whether there has been an act of deception.” [Yonhap Infomaxkorea 2022-05-20]

URL: Possibility of Punishing Terraform Labs…How to Apply Act on the Regulation of Conducting Fund-raising Business Without Permission