Terra Co-Founder Faces Lawsuit In Singapore
The name of the Terraform Labs co-founder, Do Kwon, has become rather notorious these days and he may already be facing legal action in both the United States and South Korea.
As it turns out, he has now become the target of a lawsuit filed recently in Singapore, as has the founding member of Terra, Nicholas Platias, and the Luna Foundation Guard (LFG).
On September 23rd, a lawsuit was filed in the high court in Singapore in which 359 people alleged that Do Kwon, Platias, Terra and the LFG made fraudulent claims.
These include that the Terra stablecoin, which was previously known as UST (TerraUSD), now called USTC (TerraUSD Classic), had not been stable and couldn’t maintain its peg to US dollar.
The claimants have filed the lawsuit to obtain compensation of damage and loss of about $57 million combined in accordance with the value of the UST tokens they had bought, sold, or held in May when the market downturn hit.
They have also put in a request for an order that would require the defendants to pay for ‘aggravated damages’.
Those who have opted to file the lawsuit said that the four parties connected to the Terra ecosystem were aware or should have known that all the claimants wanted was to buy stablecoins that were not vulnerable to the volatility of the overall market and just wanted to make a decent passive return.
It has been specifically alleged in the court document that Kwon fully understood the structural weakness associated with algorithmic stablecoins.
This was partly due to the role he played in the fall of Basis Cash. The lawsuit said that the representations were made by the defendants fraudulently.
It said that either they had full knowledge that the representations were untrue and false, or they had been reckless and not worried about whether they were true or not.
This is not the first time that Kwon has found himself named in a lawsuit, as a number of legal actions have been taken against the Terra co-founder as well as threats.
This happened after the Terra blockchain ecosystem collapsed back in May. An arrest warrant had been issued for him by authorities in South Korea back in September, which had been dismissed.
He had also been added to the Red Notice list of Interpol, with law enforcement requested to find and possibly detain him.
However, the Terra co-founder has been quite active on social media platforms. He said back in September that he was not making any effort to hide, but he did not disclose his location.
People have been speculating that he has gotten plastic surgery in order to disguise himself. The lawsuit on September 23rd had put Kwon in Singapore.
But, there have been reports that it is possible he has fled the country. The foreign ministry of South Korea ordered Kwon on October 6th to surrender his passport or they would cancel it.