Monday, December 5, 2022
HomeLaw & PoliticsDo Kwon Is Facing $57 Million Lawsuit In Singapore

Do Kwon Is Facing $57 Million Lawsuit In Singapore

Do Kwon, the co-founder of Terraform Labs who may be subject to legal action in South Korea and the United States, is the target of a lawsuit in Singapore along with the Luna Foundation Guard (LFG) and Terra founding member Nicholas Platias. The lawsuit alleges that the three of them conspired to steal intellectual property from Terra.

359 people have filed a lawsuit against Kwon, Platias, the LFG, and Terra on September 23, in the high court of Singapore. The lawsuit alleges that the defendants made fraudulent claims, including the fact that Terra’s stablecoin, TerraUSD (UST), which is now known as TerraUSD Classic (USTC), was not “stable by design” and was unable to maintain its peg to the U.S. dollar.

The claimants are seeking compensation for a collective “loss and damage” amount of around $57 million based on the value of UST tokens that they acquired, held, or sold during the bear market that began in May. In addition to this, they ask for an order that requires payment of “aggravated damages.”

According to the persons who have filed the complaint, the four parties who are affiliated with Terra “knew or ought to have known that the Claimants desired to acquire and hold digital stablecoins that were not susceptible to the volatility of the broader market and produce a fair passive return.” The legal complaint makes the particular allegation that Kwon was aware of “the fundamental vulnerability of algorithmic stablecoins.” This is allegedly due in part to the fact that he had a role in the failure of Basis Cash.

The complaint states that the defendants acted fraudulently by making the statements in question “either fully knowing that they were false and inaccurate, or carelessly without caring whether they were true or not.”

Since the collapse of the Terra blockchain ecosystem in May, Kwon has been the focus of a number of legal proceedings and threats. In September, the authorities in South Korea filed an arrest warrant for the Terra co-founder; however, the order was later revoked. Interpol placed Kwon to its Red Notice list, urging that law enforcement identify him and perhaps imprison him.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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