Do Kwon, the co-founder of Terraform Labs who may be facing 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.
In a lawsuit filed in the Singapore High Court on September 23, 359 people allege that Kwon, Platias, the LFG, and Terra made fraudulent claims, including that Terra’s stablecoin TerraUSD (UST)—now TerraUSD Classic (USTC)— it was not “stable by design” and could not maintain its peg to the US dollar.
The plaintiffs seek compensation of approximately $57 million in combined “losses and damages” based on the value of the UST tokens they bought and held or sold amid the market crash in May. They also request a payment order for “aggravated damages”.
According to the people filing the lawsuit, the four parties linked to Terra “knew or should have known that the plaintiffs wanted to buy and hold cryptocurrency stablecoins that were not subject to general market volatility and earn a decent passive return.The court document specifically alleges that Kwon had been aware of “the structural weakness of algorithmic stablecoins” based in part on his role in the Basis Cash crash.
“Defendants made such representations fraudulently, either knowing they were false and not true, or recklessly without caring whether they were true or false,” the lawsuit says.
Kwon has been the subject of numerous legal actions and threats since the collapse of the Terra blockchain ecosystem in May.. South Korean authorities issued an arrest warrant for the Terra co-founder in September, which was later dismissed, and Interpol added Kwon to its Red Notice list, asking law enforcement to locate and potentially arrest him.
Kwon has been active on social media during the controversy, saying in September that he was “not making any effort to hide” despite not revealing his location. One Redditor said that Kwon was “doing a terrible job of playing the innocent for a guy who is innocent” in response to the lawsuit. Others speculated that she had undergone plastic surgery to disguise her appearance.
Idk, its pretty good whiskey
— Do Kwon (@stablekwon) October 24, 2022
I don’t know, it’s a pretty good whisky.
The September 23 lawsuit listed Kwon’s address as Singapore, but some reports have suggested he may have fled the country. On October 6, the South Korean Foreign Ministry (Kwon is a Korean national) ordered Terra’s co-founder to hand over his passport or it would be nullified.
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