Do Kwon is Defending Himself in Court in Singapore Over a 57 Million Dollar Case

On the 23rd of the month before, the case in question was brought before the Supreme Court of Singapore. Nearly 359 people have filed a lawsuit against Terra LFG, Platias, and Kwon, accusing them of making false statements about TerraUSD (UST), which was the native stablecoin of Terra and has since been rebranded as TerraUSD Classic (USTC). However, TerraUSD (UST) was not stable as intended by its designers, and it was unable to keep its peg to the United States dollar.

The plaintiffs are seeking compensation for cumulative damages and losses totaling up to $57 million, which is based on the value of the tokens that were bought by them as well as traded during the collapse in the market that occurred in May of this year. In addition to this, they asked the court to issue an order to compensate them for the severe damages.

According to the people who brought the legal action, four parties associated with Terra either knew or should have known that the plaintiffs wanted to purchase and keep the stablecoins with no liability to the volatility of the broader market as well as to receive a good passive return. Additionally, the plaintiffs wanted to do all of this in order to receive a good passive return.

The document that was submitted to the court specifically accuses Kwon of being aware of the structural vulnerability of the algorithmic stablecoins. This points to the fact that he was probably involved in some capacity with the fall of Basis Cash. According to the allegations made in the lawsuit, the defendants made the false statements that were outlined above either with full awareness that they were misleading and incorrect or in a careless manner without giving any thought to whether or not the statements were accurate.

The Co-Founder of Terra is Being Targeted by Law Enforcement Across the Globe

Since the collapse of the blockchain ecosystem of Terra in May, Do Kwon has been the target of a number of potential legal measures as well as threats that have been made in advance. In the preceding month, the authorities in South Korea issued an arrest warrant for him; however, they ultimately decided to withdraw the warrant.

After that, Interpol made the announcement that the Terra co-founder had been added to its list of Red Notices, which convinced law enforcement agencies to locate and detain the individual in question. In the lawsuit that was filed on September 23rd, the address of Kwon's home in Singapore was located. Despite this, the reports indicate that the person may have already left the country.