Singapore Class-Action Suit Against Terraform Labs, Do Kwon Proceeds: Report

• Terraform Labs Faces Class-Action Lawsuit in Singapore
• Class-Action Suit Progress
• The Lawsuit Background
• Additional Charges in the U.S.

Terraform Labs Faces Class-Action Lawsuit in Singapore

Terraform Labs and its founder, Do Kwon, are potentially facing a class-action lawsuit in Singapore. This comes after the High Court rejected their efforts to dismiss the case, as reported by Business Times. Terraform's legal team attempted to divert the action towards an arbitration process, citing the website's terms of use. They argued that users had waived their right to a trial and to participate in a class-action lawsuit. However, the court had a different interpretation.

Class-Action Suit Progress

The Lawsuit Background

The lawsuit was filed in September 2022 by Julian Moreno Beltran and Douglas Gan, representing 375 people. The claimants allege a total loss of $57 million. They accuse Terraform Labs, Do Kwon, and his co-founders of fraudulent misrepresentation in promoting the algorithmic stablecoin terraUSD (UST). This promotion allegedly led them to buy, stake, and hold onto the tokens. They maintained their hold on the tokens as UST lost its peg to the U.S. dollar in May 2022, plummeting to less than $0.10.

Additional Charges in the U.S.

Furthermore, Terraform Labs is also facing fraud charges in the U.S., filed by the Securities and Exchange Commission. The Commission accuses the company of selling unregistered securities. Terraform requested the dismissal of this case in October, stating that the regulator had failed to establish its case. The company did not respond immediately when asked for further comment.

Edited by Jonathan Stoker