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Terraform Labs and Do Kwon Face Class-Action Lawsuit in Singapore!

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Author: Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Terraform Labs and its founder, Do Kwon, could face a class-action lawsuit in Singapore after a court dismissed an attempt to shift the case to arbitration. The lawsuit, filed in September by two claimants on behalf of 375 others, alleges fraudulent misrepresentation by Terraform and its executives in promoting the algorithmic stablecoin terraUSD (UST). The claimants claim they lost a combined $57 million when UST lost its peg to the US dollar in May 2022 and plunged to less than $0.10. Terraform is also facing charges of fraud in the US brought by the Securities and Exchange Commission. The case is progressing towards the discovery stage, according to lawyer Mahesh Rai.

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