Terra CEO Do Kwon Faces $57 Million Lawsuit in Singapore 

Terra CEO Do Kwon Faces $57 Million Lawsuit in Singapore 

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The controversial Terra co-founder Do Kwon along with the Luna Foundation Guard (LFG) and Terra founding member Nicholas Platias may be targets of a new lawsuit in Singapore.

Due to various crypto events like Terra and the crypto crash this year that has led to many investors losing their funds.

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Aggrieved Investors File a Suit Against Do Kwon, Others

About 359 aggrieved Terra investors in Singapore have filed a suit last month against Kwon, Platias, and the LFG claiming that Terra ecosystem, made fraudulent claim about TerraUSD (UST), which was not “stable by design” and unable to maintain its 1:1 peg with the US dollar.

As reported by the Wall Street Journal, investors “believed that [TerraUSD] would be a token that was stable by design [and] whose price would always be pegged to the US Dollar.”

In addition to the above, the plaintiffs assumed that TerraUSD would offer “attractive APY returns” when staked via Terraform Labs’ lending and borrowing service, Anchor Protocol.

According to plaintiffs, the four parties linked to Terra “knew or ought to have known that the Claimants wished to buy and hold cryptocurrency stablecoins that were not subject to the volatility of the wider market and earn a decent passive return.”

As per the filings, the investors have demanded about $57 million in compensation for their lost funds to the collapse of Terra and its entire ecosystem, an amount that is based on the value of UST tokens purchased and held or sold by these investors during the market crash in May, and also for aggravated damages.

In May, Terra and its entire ecosystem collapsed, leading to investors losing billions of dollars. Since then, Terra’s CEO has been the target of many lawsuits.

As part of Terra investigation, Interpol issued a “red notice” on the controversial Terra CEO, making him a wanted fugitive in over 190 countries globally, although, he has reacted to the move, claiming that he is “not on the run” and stated his reasons for hiding.

Kwon also debunked the report saying that his funds were frozen on various exchanges. Kwon, whose arrest warrant was issued in September by a South Korean court for violating the capital market rules, is still yet to reveal his location, although he’s been active on social media.

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