LKB & Partners, one of South Korea’s leading law firms, is preparing to file a lawsuit against Terraform Labs CEO Do Kwon. This was reported by local media citing a company statement.

LKB noted that they applied on behalf of ordinary investors. Several employees of the firm, which lost money as a result of the collapse of the algorithmic stablecoin TerraUSD (UST), may join the lawsuit.

LKB representatives also plan to file a complaint with the Seoul Police Department’s Financial Investigation Department and request the city’s Southern District Attorney’s Office to confiscate Kwon’s property.

According to Yonhap, LKB lawyers are considering suing project founder Daniel Shin.

UST and LUNA prices started falling on May 10. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%. As a result, as early as May 8, the “stablecoin” briefly lost its peg against the dollar.

The decline continued on May 11 and was followed by the LUNA algorithmic stablecoin, which dropped to $0.3.

Recall that in May, the media reported that after the collapse of UST and LUNA, three employees of the legal department of Terraform Labs resigned.

Earlier, it was known about the call of the representative of the South Korean party “People’s Power” Yun Chang-hyun to hold parliamentary sessions with the participation of Do Kwon.