A class-action lawsuit against Terraform Labs and
its Co-Founders will advance in Singapore. This follows a decision by the High
Court to dismiss the defendants' appeal. It marks an important milestone in a
case initiated by Julian Moreno Beltran and Douglas Gan on behalf of multiple
parties, the Business Times reported.
Following the collapse of UST tokens in May last
year, multiple lawsuits have emerged against Terraform Labs and its associated
entities. This particular class-action was filed in September 2022, representing 377 parties.
Fraud Allegations and Extradition Requests
The dismissal of the appeal by the defendants on
November 30, 2023, signified an important step in the progress of the
lawsuit. The case involves
allegations of fraud against Terraform Labs, Do Kwon, Nikolaos
Alexandros Platias, and Luna Foundation Guard.
The plaintiffs contend that misrepresented
information led them to purchase and hold UST tokens despite their drastic
devaluation. Recently, a court in Montenegro dismissed Terraform's attempts at arbitration, paving the way for Kwon's extradition.
The collapse of UST, originally pegged to the US
dollar at a ratio of 1:1, triggered claims of nearly US$57 million for losses incurred by the affected
individuals. This was followed by a filing of claims by investors seeking substantive remedies. Kwon faces significant legal challenges and could be extradited to the US or South Korea.
Do Kwon's Arrest and Legal Challenges
Kwon and Han Chong-Joon, Terraform's Former CFO,
were arrested while attempting to travel to Dubai. The duo was sentenced to a four-month jail term in Montenegro for possession of forged passports and
falsified documents. A bail of €400,000 was granted, although Kwon denied the alleged forgery.
Confiscation of fake passports and identity cards
from the executives led to their conviction. The bail earlier granted was suspended due to incomplete property assessment. The charges against Kwon
included commodities fraud, securities fraud, wire fraud, and conspiracy.
Kwon's assertion of obtaining travel documents
through a Singapore-recommended agency, unaware of their forgery, contrasted the
court's decision. The collapse of Terra's digital assets in May last year
triggered legal ramifications, with fraud charges from US federal prosecutors
compounding Kwon's legal predicament.
This article was written by Jared Kirui at www.financemagnates.com.