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- Kwon and others made fraudulent claims on UST
- LUNA Price at the time of writing – $2.47
- The claimants are seeking compensation for roughly $57 million
Along with the Luna Foundation Guard (LFG) and Terra founding member Nicholas Platias, Do Kwon, the co-founder of Terraform Labs, is the subject of a lawsuit in Singapore. He could be sued in South Korea and the United States.
359 people filed a lawsuit on September 23 in the high court of Singapore alleging that Kwon, Platias, the LFG, and Terra made false claims, including that Terra’s stablecoin, TerraUSD (UST), which is now TerraUSD Classic (USTC), was not stable by design and could not keep its peg to the US dollar.
Claimants request an order to pay for aggravated damages
Based on the value of the UST tokens that the claimants purchased, held, or sold during the market downturn in May, they are seeking compensation for roughly $57 million in “loss and damage” and an order to pay for aggravated damages.
The four parties associated with 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, according to the individuals who filed the lawsuit.
Based in part on his role in Basis Cash’s demise, the court document specifically asserts that Kwon was aware of “the structural weakness of algorithmic stablecoins.
The Respondents made the said portrayals deceitfully either well realizing that they were misleading and false, or foolishly not caring whether they were valid or bogus, says the claim.
Since the Terra blockchain ecosystem collapsed in May, Kwon has been the target of numerous legal actions and threats. In September, South Korean authorities issued an arrest warrant for the Terra co-founder, which was later canceled. Interpol added Kwon to its Red Notice list, asking authorities to locate and possibly detain him.
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Some reports claim he may have fled the country
Throughout the controversy, Kwon has been active on social media and stated in September that he was making zero effort to hide, despite not disclosing his location.
In response to the lawsuit, one Redditor stated that Kwon was doing a terrible job at acting innocent for a guy who is innocent. Others fiercely estimated that he had gotten plastic medical procedures to camouflage his appearance.
The Sept. 23 claim set Kwon’s location in Singapore, yet a few reports have proposed that he might have escaped the country. The co-founder of Terra was given the order to surrender his passport on October 6 by the foreign ministry of South Korea—Kwon is Korean—or it would be revoked.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
